Jordan Roy-Byrne – This Silver Breakout Can Run Red Hot And Stay Overbought
Jordan Roy-Byrne, CMT, MFTA and Editor of The Daily Gold, joins us to share his technical outlook on silver and why the technical breakout above $30 can continue to run red hot and stay overbought on the charts. He notes that there could be near-term overhead resistance at the $34-$35 level, based on the monthly and quarterly charts, but that silver could actually keep on running up to $50 before facing any significant corrective action. He also notes that the gold:silver ratio has been coming down below they key 80 resistance level into the low 70s, and that next resistance comes in at the 65 area on this ratio.
We then turn to the silver mining stocks looking the constructive upwards price action in SILJ, fueled by the recent breakout in silver prices, and the margin expansion that both the gold and silver stocks have been seeing as a result.
Wrapping up Jordan offers some nuances around analyzing some of the laggard PM stocks, and that one needs to be careful understanding why these stocks haven’t moved with the rest of the sector.
