$SLV $TAHO $CDE $SI_F $SSRI $XAGUSD $SVM Long

SILVER (US$/OZ)TVC

Description

⋅ May 6, 2018 12:52 PM

Few technicals all seem to indicate move up in silver when the coil pops.

(1) RSI divergence seen back to 2013.

(2) Lower trendline remains intact in the weekly RSI reading.

(3) What appears as capitulation in August 2017 that temporarily fell below long term support trendline dating back to early-mid 2000s.

(4) No retest of the lower RSI weekly trendline since January

(5) Descending triangle and symmetrical triangle going back to 2016 and 2015, respectively are coming to an end.

It could retest high 14s before a move up, but based on historical action, I think this move up within the next few months could be a new leg up.

Comments

Oh_If_Only

⋅ May 6, 2018 11:10 PM

@abenoit2, I agree with your views formed from your analysis and confirmations.
Your flat bottomed triangle would suggest a break to $12 := $16 - ($20 - $16)
The upside break from your identified downward sloping wedge did not provide the trend reversal everyone was expecting. It popped then seem to lose interest and momentum.
Therefore, IMO, that places more downside pressure on price. So I think lower before higher, but maybe some fakeouts along the way to keep the bulls encouraged.
... just my 2c worth