Chart 1: Silver is a critical decision point and the pressure is building…
Source: FinViz (edited by Short Side of Long)
I have been holding a view that Gold and Silver still haven’t bottomed. Obviously, as a Precious Metal bull, it would be lovely to receive a surprise where both of these metals start rallying to the upside. However, the double bottom patterns look super weak, in particular with Silver. But that is just my opinion, not a fact.
The facts are that Silver remains in a downtrend, with sentiment at extremely negative levels and the metal oversold. So far, there has been no sign that the downtrend is turning around. So what is the next major move for the metal?
We do not need to guess, as the price of Silver is about to tell us what is going to happen soon enough. The chart above shows a huge pressure cooker building, with resistance only a dollar on the upside and support about a dollar on the downside. This triangle is about to find a resolution, so as bulls and bears fight it out over the coming days, make sure you keep a close eye out on this one!
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