I have been reading around the web that many sites are hanging their hat on the inverse head and shoulders formation that formed in silver of late.
Given the metrics involved when forecasting completion areas for such moves, I am confident that any move up in relation to that inverse head and shoulders is now complete. That is, any upward bounce has completed. If silver moves higher it will be because of a new renewed bullish consensus in the metal not because of a continuation of THAT MOVE.
It is also important to note that gold has yet to confirm silver’s push and this is a divergence that we must pay close attention to.
I have illustrated my silver comments below. To all my American friends and readers, enjoy a very happy Thanksgiving Day and be grateful for what you have. As for my, I’m still trying to take off the extra pounds I put on last month when us Canadians enjoyed our bird.
Also note, when silver declined, the 200 day MA served as important support. As with is bounce, the 50 day moving average (which is where we currently reside) is considered resistance. We now wait to see if silver is able to breach that resistance.
Enjoy your families, friends, turkeys and some football. Give the markets a rest for the next few days and focus on what really matters.