Well, I hope everyone is happy about the new bull market in silver. Time for a breather though. The drop in the dollar that facilitated the move in silver and gold has likely paused for a bit. However, i do expect the dollar to continue down as the money printers are just getting warmed up and precious metals and commodities in general have a long way up.
What now? There is a change of character in price action and I believe silver is in consolidation now. The trading range is a massive 20 percent and there will likely be massive swings up and down especially if global markets drop down as things are shaping up for the month of August. The gold to silver ratio is also forming an inverted head and shoulders which if complete will mean a meaningful drop in silver price relative to gold for at least a while.
For the next leg up there have to be several attempts to break resistance that form a continuation pattern. This could take several months.
What now? There is a change of character in price action and I believe silver is in consolidation now. The trading range is a massive 20 percent and there will likely be massive swings up and down especially if global markets drop down as things are shaping up for the month of August. The gold to silver ratio is also forming an inverted head and shoulders which if complete will mean a meaningful drop in silver price relative to gold for at least a while.
For the next leg up there have to be several attempts to break resistance that form a continuation pattern. This could take several months.
Comment:
Ok. No trading range. What I see here is pure FOMO at this point. Not a healthy rise in any case. Fundamentally the price should be in the thousands of dollars but this does not happen overnight. Dollar is stuck in a clear trading range and can't facilitate such a move. A correction will come relatively soon at it could bring the price down to 23 or lower in the short term.