As Captain John Charts points out, SIL is breaking above resistance caused by a downtrend line that dates back to 2012, a similar pattern to what was recently spotted with GDXJ.
Chart Courtesy: Captain John Charts
Captain John also highlights bullish charts for Silver Wheaton (NYSE: SLW), Tahoe Resources (NYSE: TAHO), Hecla Mining (NYSE: HL) and McEwen Mining (NYSE: MUX). Those stocks combine for nearly a quarter of SIL’s weight.
Bolstering the outlook for SIL and SILJ is, of course, improving technical for silver-backed ETFs. Last Friday, the iShares Silver Trust (NYSEArca: SLV) rose 4.2% Friday and crossed over its 200-day simple moving average. SLV is up 5.5% year-to-date. [Silver ETF’s Bullish Technical Break]
Technical analysts point to a strong three-month base forming in silver’s trend line after the 2013 sell-off tested the 2009-2010 resistance level, writes J.C. Parets for The Exchange.