Conventional wisdom would tell you that precious metals should be lower in this environment. Trade deal, stocks at record highs, yields rising. Silver (and gold) should be weaker. But, it is not.
Silver looks like we could break the 50% retracement.
The Silver market has exploded higher reaching what may be called a “Fever Pitch” as the DSI (daily sentiment index) is at extreme readings and RSI is extremely overbought.
Silver posted today an outside spinning top after a relentless 3 month rally higher.
The Gold silver ratio reversed lower last month from an almost all time record high (above 93).
Silver is probing a key downtrend line that has been in tact since mid 2017.
The Silver market has potentially double topped. More importantly, this is happening at a key Fibonacci level and previous support from the lows back in April 2018.
Both popular precious metals (gold and silver) posted key reversal days today.