Silver made an impressive break out move today indicating it is beginning a second leg higher. CDE rose on volume off its 50 MA and was turned back at a trend line connecting recent highs.
Price originally broke out of a well formed base when silver made its earlier move in September. It broke from a price point just south of $17 and ran nearly 50%.
While the price of silver based CDE has pulled back constructively to its 50 MA for the first time since the break out. O’Neil teaches that the first touch of this line after a break out in a continuing bull market is most often buyable for further gains.
We’d be buyers here on a breach of the trend line.
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