Silver forecast. Great buying opportunity upcoming.

Today we have a look at the chart of silver on a daily timeframe. Since the March crash it has formed a cyclic pattern as observed on the graphic - during the first cycle of 93 days or 66 bars, silver touched the trend curve twice - once every 33 bars or 48 days. Starting from the beginning of the second 66 bar cycle, the metal has only formed the top after 48 days. Therefore, from all the said above we can expect a bottoming occur around September 22nd, where silver could touch prices as low as 20.80 (the trend curve). This is of course very unlikely that silver will go down to such extremes but it is theoretically possible. However, it is certain that we will see some sort of a sell-off coming to this date targeting at least 23.8, form a double bottom and skyrocket higher. Either way, we will get a good buying opportunity and closer to the day I will give out a futures long idea.

Investors that want to be short can rightfully do so with low risk and a tight stop at a close above 27.5 - the triangle resistance line. Both technical indicators are bearish, hence selling trading strategies can be applied. I personally prefer to stand aside in this situation and wait for the buying opportunity.

*Please remember, futures and leveraged trading involve a substantial risk of loss and are not suitable for all investors.

Comment:

Silver sold off at the resistance line once again. Expect another bounce from 26.40 towards another lower low.

Comment:

A close below 26.75 will be very negative for silver and the market of precious metals in general. Dear investors, please be cautious about your trading - cycles project substantial risk in all sectors.

Comment:

The expected selloff

Comment:

20.80 doesn't seem so crazy anymore

Trade closed: target reached:

The trend curve was a little off the chart.