5.9 C
New York
Friday, March 29, 2024

Silver creating a “Double Bottom” pattern?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Could Silver be creating a long-term “Double Bottoming” pattern over the past 3-years? Let’s investigate the possibility and what it would take for the potential bullish pattern to fail.

Before we get started let me make this point clear; the trend in Silver since the highs in 2011 remains down!

This chart looks at Silver on a monthly basis over the past 45-years, where we applied Fibonacci retracement levels to its 1980 highs and 1993 lows. The 23% Fibonacci retracement level comes into play at the $14 level.

The 23% level was hit a couple of years (2016), where a 40% counter-trend rally took place. Weakness since the counter-trend high has it testing the 23% level again at (1), where it could be creating a “Double Bottom” formation. While it is testing this key retracement level for the 2nd time, smart money silver hedgers have a huge bet in play it will rally.

What would eliminate the potential that that Double bottom pattern failed? A simple break of the 23% level!

If you would like to invest in Gold, Silver, Copper and the Miners, we would be honored if you were a Metals Member. We are of the opinion some of the best opportunities/inflection points in years for the metals sector are in play!

To become a member of Kimble Charting Solutions, click here.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,450FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x