After Consecutive Lows, What’s Next for Silver? | RJO FuturesPosted 04/28/2017 8:29AM CT |
After nine straight down days and the bottom seeming nowhere in sight, silver looks like it is trying to form a double bottom on the chart. If you are not familiar with double tops and double bottoms, here is a brief explanation. A double top resembles the letter “M” and is marked by a resistance point that the market hits and then falls, rises back to the same resistance point or close to it, and falls again. A double bottom is the opposite of the pattern, resembling the letter “W.” Often, double-tops and double bottoms lead to head-and-shoulders patterns. The head and shoulders top is represented by three prominent peaks, while the bottom, three prominent lows.
Technically, looking at ADX which measures strength of the trend shows this downward move gaining momentum and strengthening at 31.13. Stochastics are still declining which gives the market a bearish move. Look for silver to complete this pattern before making the next move higher.
Jul ’17 Silver Daily Chart