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SLV to underperform GLD?

|Includes: GLD, iShares Silver Trust ETF (SLV)

It's being said that SLV is way ahead of itself and there are aggressive traders want to jump in and short SLV whenever any weakness sign shows up. Well, I see one signal today. As shown below in the SLV:GLD chart. For the past seven months, SLV:GLD is in an uptrend channel. It broke out the upper channle line a couple of days ago and now it comes back to the channel again. If it does close below the channel line, it forms a well-studied "channel overshoot reversal" pattern and indicates that SLV:GLD will reverse here. Traders can short SLV and long GLD to profit from the expected move.

 
Disclosures: The author currently doesn't have any position of either SLV or GLD, but he may initiate short position of SLV and / or long position of GLD in the next 72 hours.

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