I have been using the drawing tools in a different way today, more to see what the vertices of the confirmation points along that channel would express when I made infinite horizontal and vertical lines radiating from all of them. What is pretty obvious is that silver is in a long term upward trend according the the lowest points along the channel where there are enough to indicate a strong trend. Along the top of the channel there are even more confirmation points, as well as a good number of points within the channel that also confirm the same upward trend.
What I've found interesting is the concentration of the horizontal lines showing that the price action is heading toward a heavily resisted level at around the 18.67 area (give or take) made visible by the concentration of those horizontal blue dotted lines there. The first time XAG crossed this line (more of a "zone" if you look closely) was in '08 and it didn't last terribly long. It flirted with it for two years and then really broke through for the big rally in Aug of '10. It stayed above until Sept of '14, peaked above very briefly in Aug of 16, and today we're knocking on the door again. I've indicated these points with yellow ellipses.
I'm inclined to think of this as a bullish indicator despite RSI indicating a higher probability of an imminent reversal. Considering all the other news in the markets, we might be looking at another big pop if people decide to use metals like silver and gold to hedge a decline in dollar strength .
If anyone happens to see this and has any insight, please let me know!
What I've found interesting is the concentration of the horizontal lines showing that the price action is heading toward a heavily resisted level at around the 18.67 area (give or take) made visible by the concentration of those horizontal blue dotted lines there. The first time XAG crossed this line (more of a "zone" if you look closely) was in '08 and it didn't last terribly long. It flirted with it for two years and then really broke through for the big rally in Aug of '10. It stayed above until Sept of '14, peaked above very briefly in Aug of 16, and today we're knocking on the door again. I've indicated these points with yellow ellipses.
I'm inclined to think of this as a bullish indicator despite RSI indicating a higher probability of an imminent reversal. Considering all the other news in the markets, we might be looking at another big pop if people decide to use metals like silver and gold to hedge a decline in dollar strength .
If anyone happens to see this and has any insight, please let me know!