Tuesday, January 05, 2016

Silver (SLV): Coming to the End of It's Tether (albeit an intermediate one)

A while back I had identified a promising looking bullish declining triangle in silver. I personally believe that this is another scenario of an inception "triangle inside a triangle" where due to the shear size and length of the decline that the equity is a part of, a series a lower highs are needed before a break-out finally emerges.
Silver is coming to the end of an intermediate triangle that started in late October and needs a lower-high that will test $14.00 to $14.20. This will likely be one of a series of bullish triangles that we will see before a re-test of the larger declining wedge that started back in August of 2013 is made. I wouldn't rush to make any long term bets because this look like it could stretch out for a year or more based on the weekly chart. I do think the imminent breakout near-term is still something that should be taken advantage of.