Finally some extremely good news for silver investors, the MACD-indicator in the silver chart has recently turned to a buy signal for the first time since late 2011, as you can see in the chart below the blue line has crossed the red line slightly:
This is the first time this happens from such oversold levels since June 1982 (MACD is much more oversold today i.e more upside potential from a technical perspective) when silver rallied 214%! Again, a move like that today would take silver to about $40 in just 8 months from it’s absolute bottom! Also notice how low this indicator is despite recent strength in silver. There is lots and lots of upside before this indicator is back at normal level, which is the least one would expect it to reach.
It is important to have these historic moves in mind when looking at gold and silver. I don’t only see this scenario as possible, I see it as probable based on fundamentals. Without this knowledge fresh in mind, one might sell silver to early and miss out on the big move.
I don’t believe history will repeat exactly, but I want to show that these kinds of extreme situations can result in massive moves in the price of silver. The buy-signal is in place, now let’s see what happens. Will it result in a historic move again? Possibly.