Peter Smith
⬤ The Global X Silver Miners ETF (SIL) just cleared a major hurdle—it's now trading above its April 2011 all-time high for the first time in over 13 years. According to @Digger_Vern's analysis, the price has pushed decisively past that former peak marked by the yellow dotted line on the monthly chart. If SIL can hold above this level through month-end, it'll officially confirm a historic breakout into uncharted territory.
⬤ The momentum behind this move looks solid. SIL has been climbing steadily above its 200-day moving average, which sits around the high-$50s right now, showing buyers are firmly in control. The old resistance zone that kept the ETF capped for years has now flipped into support. As long as the price stays above this breakout level, the long-term uptrend appears secure.
⬤ Looking at momentum indicators, things still favor the bulls. The monthly stochastic RSI is running hot, but there's no bearish divergence showing up yet. The analysis points out that three specific warning signs would need to appear before calling the rally into question: a bearish divergence where price makes a new high but RSI doesn't follow, a monthly close dropping back below the breakout zone, or RSI falling under 60. None of these red flags are present, meaning momentum and price are still moving together.
⬤ This breakout matters beyond just one ETF. Silver miners typically amplify moves in silver itself, often acting as leading indicators for the metal. After more than a decade stuck below the 2011 highs, breaking through represents a real shift in market structure. If SIL manages to close above this level on a monthly basis, it could reshape sentiment across the entire precious metals mining sector and signal that silver equities are entering a new phase of strength.
Peter Smith
