Silver Stocks Are A Screaming Buy

As per our silver stocks forecast 2019 we have a bullish bias for the precious metals stock segment at InvestingHaven, with a preference for silver stocks. But how is this sector evolving with current volatility in the stock market? As per the precious metals long-term stock chart, we see a screaming buy opportunity in precious metals, especially silver stocks, at this point in time!

Note, we have not noticed any fundamental change against our gold forecast 2019 nor silver forecast 2019 which is why this article is focused on chart analysis. In other words, through the charts, we want to find out whether our forecasts are still intact or if the market is proving us wrong.

First, we start with a relative strength view, one we also used in our silver stocks forecast article published several months ago: the silver stocks index compared to the S&P 500.

The silver stocks to S&P 500 ratio seen on the first chart below shows a great relative strength picture for the silver stocks sector. What really stands out is the test of the January 2016 lows. The recent decline bottomed exactly at the same level as the bottom 2.5 years ago.

This ratio is not going to determine any price level which is useful for our silver stocks forecast for 2019. However, it is helpful in understand how relative weakness has gone so far that it provides additional evidence that the bottom might be in.

What we see in recent months is a series of higher lows being formed right above long-term support. That’s why we have annotated it with the green circle. 

This is a bullish setup for the medium to long-term. Note as well that this ratio is close its long-term apex where the falling line meets horizontal support. This suggests it might be breakout time as the silver stock's sector is really at an oversold level.

(Click on image to enlarge)

As said before for fundamental analysis on the silver stock's sector we refer to this great piece silver stocks fundamentals article

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