Below looks at Silver Futures over the past decade. The Power of the Pattern in 2011, suggested that metals should be flat to down for years to come. (See 2011 Post Here) Since that posting, Gold and Silver have continued to create a series of lower highs over the past 6-years. Silver remains more than 50% lower than 2011 prices.
Could this trend be attempting to change? Could a long-term reversal pattern be in play? Below looks at Silver Futures over the past decade.
CLICK CHART TO ENLARGE
As mentioned earlier, the trend is Silver is down, as it has created a series of lower highs since 2011. It has done the same, since the summer of 2016 as well.
Over the past two years, Silver could be creating a long-term bottoming pattern (Inverse Head & Shoulders) pattern. For the read to be correct, the first thing Silver needs to accomplish is break above 9-month falling channel at (1). If Silver can accomplish a 9-month breakout, the next resistance test Silver would face, is the potential neckline, that comes into play around the $19 zone.
If Silver breaks above the neckline, it could be off to the races, potentially Hi Yo Silver!
Full Disclosure- Premium and Metals members are long Gold Miners (purchased last Friday). GDXJ had it largest volume day in history yesterday. If Gold, Silver, Copper or mining stocks are something of interest to you, we would be honored if you were a member Metals or Premium member.
Questions: Email firstname.lastname@example.org or call us toll free 877-721-7217 international 714-941-9381
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in SLW,SLV over the next 72 hours.