Orko Silver Marches Onwards.
The daily chart all in all is, well…not extremely good. Not a total disaster but no total happy camp either. Very short term this could go further down. That is if I go by the negative divergence which I see on the chart. You see, while Orko Silvers price is trading higher from late November to mid December, on the MACD we already see a decline which is a negative signal and thus bearish. We are also trading below the 10 Moving Average. RSI or Relative Strength Index is just about nearing 50.
With this bearish thought in mind I have to say, looking back at the combined action of these last days…doesn’t really seem like there is a lot of downside here. So will this negative divergence lead us to a price of $1.14 which coincides with the 30 MA or will we need a correction to the 50 MA at $1.06?
Well, I for one, I didn’t put it on the chart but there does also seem to be some support at $1.10 so I’m looking at either the 30 MA at $1.14 or somewhere around $1.10. Anything below that is shopping season, my 2 gold nuggets then.
Looking at the volume leads me only to positive thoughts. Nice, steady volume, plenty of action for all to either sell or buy their shares. MA volume is running for the last month with an average volume starting with 250K and running up to 450K. And those are averages mind you!!
So, to summarize, daily and thus in short term one might expect either a little bit down to levels I indicated above or we will go further sideways like we have done the last couple of days.
Weekly is a whole different matter. The little correction and also the slowdown in the up trend is but a mere blip on the weekly chart. On the weekly there is no sign of any bearish signals. That is NONE!
We are still steadily trading above all Moving Averages. Volume is steady and increasing when looked at the MA. (the red arrow)
MACD shows a slight decrease in the histogram but on the weekly still too small to make any difference to the leading trend…which is still UP!
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