$Silver (SLV) – Daily
Silver is breaking lower today, and looks like it will close below the “neckline” (NL #1) of a bearish Head & Shoulders formation, with a price target of approximately $14.25 for SLV.
Bulls do have a sliver of hope in that the October low can be used as a benchmark for drawing another neckline (NL #2) – with support at about the $15.58 level basis SLV. However, since today’s negative price action will also correspond with a bearish crossover in the MACD indicator, and bearish MACD Histogram signal, I’m inclined to consider the break below NL #1 today as valid, with the trend now breaking in favor of the bears.
Next in line then, is the (green) 2-Year trendline which may offer support right about where a couple gaps still remain open from the July bottom, so that looks like logical price target for SLV in the short term.
Stepping back for a longer term view – I recently posted the following chart – stating that, if the symmetrical triangle is drawn as shown, it seems SLV is destined to fall to the green trendline – which would actually be a bullish scenario, chartology count-wise, if Silver can find support there.
Excellent Work RTV but I must inform you I have been instructed to shoot the messenger
🙂
lol!
RTV, I agree with you analysis as the timing for this move is corresponding to the upcoming Fed meeting. IMO, we should see lows for silver occurring somewhere near that time frame. My guess is right after the meeting, if they are hawkish or right before the meeting, if they are dovish. In any event it could provide a good entry point for going long.