Thursday, May 31, 2007
Trendline break buy signal
Just as you can use a break in the trendline as a sell signal you can also use it as a buy signal. In the first chart you can see where silver broke the trendline. Coupled with this weeks very bullish COT report for silver. This looks like a pretty good setup to buy or add to (if you're already a precious metals investor) your silver position. In the second chart you can see the same signal for the PM miners. One thing to take notice of is the large % move in the HUI. Normally the mining stocks will lead a move up in the metals and thats exactly what's happening today. I've also pointed out a great example of a 2b reversal on the HUI chart.