I understand that the metals industry is having quite a boom currently, as is the market as a whole, reaching new all-time highs. Part of the reason is the moves and expansions commodities have been making within their respective industries, signaling growth, causing hype, which in turn increases stock price simultaneously.
However, this is my question, with an RSI of about 80 and MACD lines over the signal line, on paper it seems as if the trust is overbought and is getting ready for a potential pullback over the coming weeks. Is this the verdict that others are coming to, or am I looking at it through my inexperienced trading lens completely the wrong way?
Arguments and verdicts for Silver ($SLV)
byu/clashroyaleK1ng inoptions
Posted by clashroyaleK1ng
4 Comments
I have a very humble opinion on this. As an older dude. When silver pumps and people pump it, the metals pump is near an end.
However, there is this China silver rule or some crap. Maybe causing a spike. And theres this US denominated silver vs China bid difference. There might be another 10% left.
I don’t know what I’m talking about but also don’t own and metals stock or ETFs.
I’m probably 40% or better in **SLV**, on about 480k I’m trading across 6 accounts.
Initially one-third in each starting 12/3, but plowing returns from LEAPS Calls back into more SLV.
So yeah, I like silver a lot. (And gold again, after its hissy fit on 10/21. And platinum and palladium starting this past Monday.)
I’ve never done T/A, don’t believe in it. Not disparaging it, use it if it seems to help.
But for how long have people said, “I can’t buy that stock/ETF/mutual fund/’67 Camaro SS *NOW!* It’s at all time highs!”
And then they sit on the sidelines while the things continue to make *new* ATHs.
I’m a momentum trader (performance-chaser if you’re less diplomatic.)
I bought SLV because it was going up.
Like I bought GLD on March 5th because it was going up.
When gold stopped going up, I got out of it. (Late, in early November, but still made over 100% from it.)
I’ll do the same with silver. But not until it flattens and then starts to go down.
So that’s my take on it.
Cheers!
I don’t think precious metals follow normal equity rules.
As long as the price is up, it could stay overbought for a long stretch
Especially if they market feels AI, or other jitters. You’ll probably have higher buy ins
I’m not some seasoned trader though, just my opinion
Im more of a holding PSLV or PHYS guy. Imo if your silver or gold shares aren’t transmutable to hard bullion by design then they accommodate the speculation side but, aren’t worth as much on the debasement back stop side if that makes sense.
If I dont have the option of both vectors then its just not as appetizing to me.