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Silver traders formed a couple of large bullish Ascending Triangles at (1) and (2). Once Silver broke to the upside of these patterns, 100% rallies soon followed.
Silver traders could now be forming a large bearish Descending triangle at (5), with the bottom of this pattern being the 50% Fib support level.
If sellers step in a push Silver below support, the Power of Patten suggests that the decline in Silver could be a large one!
I’ve been thinking about this bearish triangle on the weekly chart for a while now. All my PM stock newsletters are insanely bullish right now due to the “fix” of Europe’s problems that Merkel delivered on June 29th, the bullish COT reports, etc. But I thought the silver rally was anemic compared to other commodities and gold hit its head on 1600 and stopped. In my humble opinion, this ominous pattern remains in force for silver until we see a MUCH greater break to the upside.
Erik…great question/commnet! could it be a flag? possible-
pennants using have falling highs and rising lows. This pattern in Silver seems to have a series of level lows along the 50% Fib level.
Notice on the way up the opposite took place, per the ascending triangle, where rising lows and flat tops took place.
Chris
What’s the difference between a “bearish descending” pattern and a “bullish pennant”?
I can see an argument being made that this pattern formation is bullish.