Why you should pay attention to Silver ?

Silver has been hammered pretty badly during the sell-off in March and after the recent market correction.

Nevertheless, the large timeframes tell a different story.

When we zoom out, we can quickly notice the huge that silver has been putting since Dec-15 marked by the a lower low $11.639 in Mar-20 and then a solid bounce followed by a rally to $29.869 in August.

This month the price has further corrected to $21.665 marking an oversold RSI up to the daily timeframe.

Looking at the higher timeframes weekly and monthly,

- taking the history since 2013 into account, we could see a large cup formation to which the current drop could be seen as the handle pattern being worked out,
- taking only the recent drop into account, we could see a very interesting bull flag formation being worked out.

In either cases, a breakout over $28 might send Silver back to .786 fib level with a price target over $41 before a longer consolidation takes place (if it follows gold's path).

Silver is known as a lagger but it is also an aggressive mover since its cap is not as big as gold.

I am definitely going to increase my exposure to Silver and silver mining stocks as well.

Let me know you thoughts, like, follow and share to support my ideas.

Until next time !
Chart PatternsTechnical IndicatorsSilversilveranalysissilverchartssilverdollarsilverforecastsilverlongsilversignalsilverusdTrend Analysis

Also on:

Disclaimer