Silver Juniors Ready to Rumble: Bullish Signs Emerge

I've been watching the SILJ very closely for confirmation that the silver juniors are finally ready for their turn to run. You may have noticed that today's action in the PM complex was fairly subdued as the backtest to the top rail of the April bull flag is taking place, but many of the small and micro-cap silver stocks showed some decent gains.

Let's start with the daily chart for the CNDX, which shows the one-year bullish expanding rising wedge we've been following, showing the perfect breakout and backtest, with the price action taking out the breakout high, which is what we want to see from the PM stock indexes, which hasn't happened yet.

This daily chart puts the bullish expanding rising wedge into perspective, with the double breakout above the top rail of the expanding rising wedge and NL2 with a clean backtest on NL2.

I call this weekly chart the "clean" double H&S bottom because of its clean and simple look, which is also very symmetrical, as shown by the neckline symmetry line. This chart also shows how we could see reverse symmetry to the upside over the same area on the way down, as shown by the black arrows.

Note how today's weekly bar opened above last Friday's close, which technically would have been a gap if it weren't for the intraday high made last Friday.

This monthly history chart shows that the month of May has been very good for the CDNX, continuing its breakout move. It's always possible we could get a backtest, like in 2012, but there's no way to know. Looking at the other trading ranges, with the exception of the 2012 backtest, most don't show much of a backtest, if any. Once the breakout occurred, it was off to the races.