The battle for silver’s golden cross is on

Last week we wrote a piece about an imminent bullish ‘golden cross’ chart formation for silver. We noted:

We’ve written in the past couple of weeks about the fact that gold is about to have a ‘golden cross’ (where the 55DMA [day moving average] 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.

If we take a look at the silver chart below we can see that the 55DMA crossed above the 100DMA on monday (23rd of September).

Silver $ (daily):

silver golden cross confirmed(click for shaper image)

Yesterday silver broke back below its 55DMA and the 100DMA intraday, but the bulls managed to recapture both averages by the close. Today there is a similar battle going on, with the silver price currently sitting bang on the now upward sloping 55DMA – watch this level into today’s close (around the $21.70 level).

So just what is so special about a ‘golden cross’ anyway? From last week again:

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%.

Silver $ (daily):

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

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/the-battle-for-silvers-golden-cross-is-on-11820/

Posted by on Sep 25 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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