Hi Ho Silver, Away?
It may be premature to declare the three-week corrective phase in Silver has run its course by there are early signs that it may have reached its terminus. Key support at the $29 held last week and early this week and prices have started to move higher and are challenging the down trend line (yellow dotted line). Prices also avoided a test of Cloud support. What I consider as the “first mover”, Fisher Transform has started to hook higher, from an extreme low and has overtaken its signal line. MACD has thus far avoided entering negative territory and is stabilizing in concert with the histogram* (vertical green lines) pushing higher. Key to the thesis that the short-term correction is complete is Silver’s ability to close above downtrend resistance and its ability to overtake and close above the Kijun Span which is the midpoint between the highest high and lowest low over past 26 trading sessions. I may be sticking my neck out, but I believe odds favor that the three-week corrective phase has indeed run its course.
*The MACD histogram is the difference between MACD and its signal line
For readers who are unfamiliar with the technical terms or tools referred to in the comments on the technical condition of Silver can avail themselves of a brief tutorial titled, Tools of Technical Analysis that is posted on The Markets Compass website…
Charts are courtesy of Optuma.
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