Precious metals have performed strongly this year, with gold returning 32% year-to-date and silver returning nearly 40%. The long-term bullish trends in each commodity are intact, but from a technical perspective, silver looks more actionable in the short term. While silver has produced strong returns this year, it doesn’t look overextended when looking at the iShares Silver Trust’s (SLV) monthly chart, which shows long-term improvement. The long-term momentum is positive, with both the monthly MACD and histogram expanding as silver rises to its highest levels since 2013. The 61.8% retracement of the trend. In the short term, there are some signs of weakness supporting a retest of the breakout near $29.60, which would provide a more favorable entry point. Additional support for SLV lies at the 50-day (10-week) moving average near $27.60. A breakout in silver’s absolute value has the potential to lead to relative outperformance against gold in the coming weeks. The gold/silver ratio has seen medium-term momentum turning lower around the 10-week moving average, with room for support at the bottom of the longer-term trading range. —Katie Stockton and Will Tamplin Get free access to Fairlead Strategies research here. Disclosure: All opinions expressed by CNBC Pro contributors are theirs alone and do not reflect the views of CNBC, NBC UNIVERSAL, its parent company or affiliates, and may have been previously published by them on television, radio, online or other media spread on. The above is subject to our Terms and Conditions and Privacy Policy. This content is for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to purchase any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not apply to your particular situation. 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Katie Stockton says silver is breaking out and could overtake gold in the future | Real Time Headlines
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