Silver has formed a (temporary?) bottom, and looks now headed towards $40-$41.
First resistance will be the 38.20% fibonacci retracement level as well as the 50 days Moving Average, which are located near $39. (see second chart below)
Next resistance will be found around $41, which is the 50% Fibonacci retracement level and a Fibonacci Fan line.
On May 10th and May 11th, price retested this Fibo Fan line before heading heading back down to set a lower low.*
However, this lower low created Positive Divergence as we told our subscribers on May 13th:
On May 17th, we bought shares of GDXJ at a price of $34.05.
On May 18th, we sold these shares at a price of $35.45, realizing a net profit of 4% in less than 24 hours.
On May 20th, we bought again at a price of $34.91, and sold them 3 hours later at a price of $36.20, realizing a net profit of 3.5% in just 3 hours.
On May 23rd, we bought again at a price of $35.0591, and sold them on may 24th at a price of $36.20, realizing a net profit of 3.10% in less than 24 hours.
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