The title of the 2007 movie, "Fantastic Four: Rise of the Silver Surfer" relates to the recent price action in silver.
"Fantastic Four" is the number of times the precious metal has approached a line of resistance that goes back several years. The fourth time is happening now; and a quadruple climb of this kind is unusual indeed:
"Silver has returned to the long-term resistance line that dates back to the...high of April 2004. This push...marks the fourth test of this line since November of last year. I cannot remember a 6+ year resistance line being tested on four separate occasions over a four month period, especially after a blow-off high.."
This chart shows silver's latest push upward.
As "silver surfers" push the price toward a new high again, it's easy to forget that precious metals have not always been considered a "mainstream" investment.
And even for precious metals investors, silver has often played second fiddle to gold. Yet spot silver has more than tripled since late 2008, when it was trading under ten dollars; the price jumped some 80 percent in 2010.
And in the first few days of the New Year, spot silver spiked to $31.29. The January 3 high was the third time within a few months that silver had tested resistance. It appeared that this would be, "three times and you're out."
Indeed, the price of spot silver fell for a time, but now it appears silver is trying to go into "overtime."
Silver has climbed back after reaching a low of $26.36 in late January. And one senior market strategist at Lind-Waldock believes momentum is on this precious metal's side:
“I think silver prices look fantastic...Silver broke through the small resistance area of $30.50, which is bringing momentum traders into the market."
TheStreet, (2/15)
The investing fervor attending precious metals has been slow to wane. But what does the Elliott wave structure tell us about spot silver's price "momentum?"