Silver creating a “Double Bottom” pattern?

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!

 

 

All the analyst's research in the world can't help with when to enter or exit a position. The Power of the chart Pattern will. Learn how

See a Free sample of our most popular research reports here  

Receive Chris Kimble's research to your inbox, immediately after it's posted to the blog

See the latest webinar here

Email services@kimblechartingsolutions.com  

Call us Toll free 877-721-7217    International 714-941-9381 

Website: KIMBLECHARTINGSOLUTIONS.COM