Since the beginning of this month, Silvercrest Metals (SIL.TO) has been rocketing back up the rankings in the SIA S&P/TSX Composite Index report, driving up out of the red zone, where it had languished for six months, and returning to the Green Favored Zone yesterday for the first time since April. Yesterday, SIL.TO climbed 26 positions to 56th place and it is up 54 spots in the last month.
A major breakout is underway in Silvercrest Metals (SIL.TO) shares. Between August and October, a bullish Head and Shoulders base (circled) indicated that a downtrend was nearing its end. This month, the shares have embarked on a new uptrend, completing the base, and snapping a downtrend line. Recent gains, which started with a breakaway gap, have come on increasing volumes, a sign of renewed accumulation.
Initial upside resistance appears in the $10.00 to $10.50 zone where a round number, measured move and previous resistance cluster. Initial support moves up to the $8.25 recent breakout point.
A previous downtrend in Silvercrest Metals (SIL.TO) appears to have bottomed out back in September. Since then, the shares have shown signs of renewed interest, completing two bullish Double Top breakouts, and establishing a new uptrend of higher lows.
Potential upside resistance tests appear near $9.55 based on a horizontal count, the $10.00 round number, and $10.55 based on a vertical count. Initial support appears near $8.15 based on a common 3-box reversal.
With a perfect SMAX score of 10, SIL.TO is exhibiting strength across the asset classes.
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