When you get waxed 30% in a couple of weeks, what good news could there be?
Here’s the bright-side – for the silver bulls that didn’t get margin called, you’ve seen solid support at the 50-day moving average (blue line below) over the past 24 months:
The bad news? It’s another $8 down to get there!
To put things in perspective, a correction down to $27 would put silver at its 50-day MA. It’d have to correct all the way down to $18 to get to its 200-day MA.
Silver was WAY overdue for a correction, so this recent price action is not exactly surprising (except for those, myself included, who wonder what took so long).
Everyone’s favorite silver stock, Silver Wheaton (SLW), had more of a measured rise. As a result, its recent decline has not been as violent, either.
I hope to use this correction – however long or deep it is – to dollar cost average into some Silver Wheaton. If you believe the longer term silver bull market remains in play, SLW is a well run company with a favorable royalty-based business model, that’s well worth checking out.
And as you can see from the chart above, there’s no shortage of price action!
Post Footer automatically generated by Add Post Footer Plugin for wordpress.