$Sun Silver Ltd(SS1.AU)$ I know... still the silver theme... not on AGQ for now, but obviously still related.
Silver is hovering around $68.8, a resistance line. The silver price had consolidated and cleared $64.4. It appears that this $68.8-$70 resistance proved a little stubborn. There is a good chance silver price will bounce around this range for a bit, however looking at the secondary charts and the gold charts, the increasing volume and bounce off of RSI and KDJ appears to give silver price that boost to clear $70 sooner rather than later.
Sun Silver appears to require this timely boost. Its RSI and KDJ indicators are both pointing downward, which is conflicted by the MACD, which is very much in positive territory. There's also a big spike in volume (ignoring the red bars). So far, Sun Silver has followed the uptrend of silver prices (in fact with a supercharged ramp). Even the consolidation is similar.
The supercharged ramp could be the explanation why the consolidation seems in Sun Silver is more pronounced than silver itself, resulting in what we observed for RSI and KDJ indicators. The consolidation appears healthy and with the right push, the next leg up is just around the corner. The next resistance line is around $1.46. With silver price matching past $70 towards $72 and $83, the energy would likely be enough to see Sun Silver through. Furthermore, Sun Silver has consistently added to its already rich silver reserves. Even if silver price is to consolidate, the increasing reserve from Sun Silver would be good enough to serve as its own fuel to push higher. I don't see why it would stop at $1.46 and not towards the recent highs... it's just a matter of time for the reserve to be added. There is more to it than simply silver price follower...
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- MichaelPerez·08-24 18:52TOPMACD staying positive while RSI and KDJ drift lower usually reads like a pause, not a trend break. If silver clears 70 cleanly, that divergence probably resolves upward fastLikeReport