Technical Aspect:
- Silver is showing a clearly recognisable bottoming consolidation that lasted for a whole year (2015). Anyone remember how the bottom of USDJPY looked like?
- XAGUSD bottomed at the dawn of 2016. If you are a subscriber of ForexAnalytix you will have probably read plenty of times in my analysis about the importance of seasonality (tops and bottoms have the tendency to appear way more often than statistics would suggest near the beginning or end of a month / year etc.)
- A few days ago we registered an RSI higher than 70 (on the weekly) for the 1st time after 2011. Yes, that means it was overbought on the S/T but you get those kind of “signals” when the trend is up, not down.
- Very clear impulsive structure from an Elliott Wave standpoint (currently at 4th wave of III) suggests a new high, another correction and probably another high after that before a deeper correction.
- Silver hasn’t even retraced 23.6% of the multiyear drop.
- We are currently sitting on top of important horizontal support ($18.50). IF that fails $17.70 is another great level to try being long.
Steve Voulgaridis
Disclaimer: As obvious from this post, both Steve and Stelios believe in the recovery of silver and hence are long the metal (from lower levels).
