Silver held above its 100 day moving average during ‘taper-talk’ as bullish ‘golden cross’ imminent

During the build up to the non-taper by the the Fed, when everyone was expecting a least a little tapering – but got not even a one Dollar reduction, silver performed really well and manged to close above its 100 day moving average throughout.

Silver $ (daily):

sept 20 silver $ 2013(click for shaper image)

In the five days before the non-announcement by the Fed, silver was flirting with the 100DMA, but crucially managed to close out the day above that average each day.

We’ve written in the past couple of weeks about the fact that gold is about to have a ‘golden cross’ (where the 55DMA moves above the 100DMA) before then end of September.

A golden cross’ is:

A crossover involving a security’s short-term moving average [in this case the 55DMA – GSMN] breaking above its long-term moving average [in this case the 100DMA – GSMN] or resistance level.

golden cross

(click for shaper image)

As long-term indicators carry more weight, the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average [in this case the 100DMA – GSMN] becomes the new support level in the rising market.

Technicians might see this cross as a sign that the market has turned in favor of the stock.

On the silver chart below we can see that the 55DMA is about to rise above its 100DMA next week:

Silver $ (daily):

sept 20 silver $ 2013 a(click for shaper image)

So what happened to silver the last time there was a ‘golden cross’?

Silver $ (daily):

sept 20 silver $ 2013 b(click for shaper image)

The last time silver’s 55DMA rose above its 100DMA was back in September 2012 – the price of silver went on to rally by 19%.

A similar move this time around would take silver above the $26 level and also rather neatly, right back around the two-year long support level from 2011 and 2012.

Silver $ (daily):

sept 20 silver $ 2013 c(click for shaper image)

Link to this article: : http://www.goldmadesimplenews.com/silver/silver-held-above-its-100-day-moving-average-during-taper-talk-as-bullish-golden-cross-imminent-11774/

Posted by on Sep 20 2013. Filed under Silver News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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