The precious metals are recapturing critical levels one after another, claiming a reversal to the upside after a two-year bearish trend. Silver made quite a move up on Monday, gaining over 4%. Palladium closed the day up 5.3%, and at one point, it was up 6%.
Silver managed to break above the 50-day moving average, which used to be an effective resistance since the beginning of the month and made a six-week high. More positive vibes for investors are likely to come from a quick return above $20.
At current levels near $20.60, silver has approached the support area of May, which could now move into resistance. If the bulls don’t fight back sufficiently here, the price could jump quite quickly to $22, the area of the rebound highs of June. This is already the critical turning point in the last eight years, where a battle between long-term investors with opposing views is about to occur.
Palladium rose on Monday to $2250, the high since May, developing the uptrend of the last two months. Confident buying pushed palladium above the 200-day average yesterday, although sellers have stepped near it over the past four months. This looks like a fundamental change for long-term investors in confirmation of the upward trend since June.
So far, silver and palladium are now showing more bullish signals, while gold remains anchored at the 50-day moving average and below the local lows of May and June. However, gold is often in slightly earlier stages of market cycles as a more liquid instrument.
