Silver's Ascending Triangle Bottom, and Mining Share Analysis

As shown on the charts below, the current pattern in silver looks link an ascending triangle and is very similar to the major low in 2008 and the intermediate swing low in 2012. If this analog continues to track those earlier basing patterns, it may portend another week or two of chop within the pattern before heading sharply higher over the next several months.

Also posted are several charts of miners that I didn't get around to posting last week. The analysis on these is quite compelling for an important intermediate low in the making. This is just a small sampling of the many mining shares that have incredible long-term setups in place for low-risk entry on the long side.


My stop on all positions in futures, mining shares, NUGT, GDX, GDXJ, USLV, UGLD and long-term SLV calls remains a weekly close under 13 on silver. If that were to happen, I think it would likely indicate a pattern failure for the ending diagonals in gold and silver and a failure of the near-term, presumed ascending triangle in silver.

Kim Rice 1/10/16