Silver

One of the blogs i like to look at (kevins market blog) had made mention of Silver this morning. He mentioned that silver has found support near its 200ma and we are there once again. I liked what he had to say and looked a bit further into it and drew up a chart myself. Precious metals have been quiet as of late so maybe now is a good time to take a look at them. some negative things are the divergance on a previous swing high and the fact that precious metals tend to follow oil, oil looks weak right now. However today silver had a great day while oil got punished, perhaps a sign of strength in silver.

If you cannot play the silver futures you can pick the the silver ETF - SLV or pick up some silver stocks such as PAAS or SLW



above is a chart of PAAS a silver stock i mentioned. You might want to wait for silver to confirm its move up but the risk/reward here seems to be good if your looking for a silver stock. The green line is strong support. reward can be seen at the light blue line and our risk can be either the red line or if your more conservative the grey line. If it breaks that support line i don't have much faith in it holding up. as for fundamentals PAAS seems to be cheap compared to its growth rate and peers