One of the most impressive charts, among hundreds of markets and indexes that we are tracking, is the junior silver mining chart. We have covered this chart in our Silver Stocks Outlook 2023 (public post). We cover this topic very often in our premium service Momentum Investing because we derived this Silver Top Stocks For Long Term Portfolios as a ‘leveraged play’ on the silver junior miners ETF. Once again, we are at record calling for an epic buy opportunity in top silver miners, the long term chart shows why that’s the case.
In our latest premium service alert Silver Conditions Can’t Get More Bullish Than This, available in the restricted research area, we featured more than 10 charts related to silver and its leading indicators. A must-read edition for anyone interested in the silver market.
One of those charts is the long term SILJ ETF chart, representing junior silver miners, with our annotations.
The one particular point to focus on is the long term rising channel. Though not visible on this chart, it is a multi-decade rising channel that is visible in the lower part of the chart shown below.
As seen, SILJ ETF is right now, for almost two weeks, trading right at the green rising trendline which is support of the said multi-decade rising channel.
Overall, an inverted head & shoulders pattern is in the making, right at support. This is a 13-month inverted H&S, that’s a huge support structure that has the ability to create a lot of power if & when it decides to transition from a support structure into a bullish trend.
Also, volatility is disappearing. The candles are becoming smaller, there are no large gaps on the daily candles.
Overall, among hundreds of markets and indexes, this one has tremendous potential, arguably the most promising. The point is that a consolidating market is just that: consolidating. Investors experience it as boring which is understandable but a snapshot.
Our viewpoint? Silver junior miners are a bargain but should only be considered by investors that are willing to be patient. In return, the waiting will be made up with potentially huge returns.
We recommend checking out our selection of 9 top silver stocks >>