Loading ...silver could drop very sharply in the next couple of weeks….
Most of the “steep” bull runs I look at historically (e.g., palladium from 1996 to 2001; TSLA from 2019 to 2022) had very precipitous corrections after large initial breakouts.
I think something like this is very possible in silver given its historical volatility. Also, there is a noticeable gap in the SLV chart around $24, which makes a precipitous drop more probable. For both TSLA and palladium, once they dropped below their 50 dma, the drop was extremely violent, but only lasted 4-7 days. Notice the 14 day RSI for TSLA and palladium hit oversold before the drop ended.
Palladium went up about 10x in almost exactly 4 years (not shown in chart).
That’s what I like “Doom Porn” right at the historical seasonal bottom:
file:///Users/burtcoons/Documents/Screen%20Shot%202024-06-26%20at%209.43.30%20AM.png
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I wouldn’t call it “Doom Porn”. It’s not beyond the ken to consider that silver could retest the breakout. It’s not certain, perhaps not even likely, but it is possible. Frankly, I’d love to see it! We could all pile in quite safely.
And that is exactly the sentiment that caused both palladium and TSLA to rocket higher out of their “crashes.”
https://tinyurl.com/yrz5s8zm
Well, we are talking about literal noise, since these dramatic drops only last a few days and are more or less completely erased within 2 weeks. Plus, we need energy to move higher and what better way than a violent drop.
Sir Plunger,
The link did not work for me.
Thanks,
GL
Always true and my knuckles are now white, but this is where silver traditionally bottoms.. Right here in the last few days of June
Yes, but look what palladium did in 4 days! (Nothing is written in stone of course.)
I would love for silver to just do a “high” consolidation, but I think that comes later in the bull. Again, these types of fast massive corrections usually come early in the bull.
In any event. the rebound out of an anticipated violent drop should be very strong and relatively fast, although probably not as fast as the drop.
I respect Sir Nautilus’ possible projection, but as I laid out Monday I felt this week was the opportunity and next week will be significantly higher. So if the manipulators have any powder left it will happen today, tomorrow or Friday. That would make both projections correct.