Update Silver & the beauty of patterns & bull case vs. bear case
First of all: I am bullish only if we break above the ascending triangle (on the right).
IMHO: Are you wondering why silver is not moving above the 28 USD? Scroll to the left :)
XAG is forming right now an ascending tringle with resistance around 28 USD. The 28 USD has been the support of the massive falling triangle (from 2011 to 2013). If XAG moves above, XAG could test the ATH 48 USD and then form a cup & handle pattern to move to a new ATH. IMHO: This is the bull case. On the other hand, if XAG loses the pattern of the ascending triangle XAG could see a massive sell-off.
What would be the trigger of losing the ascending triangle? The tapering discussion and an appreciation of the USD (DXY). If the FED reduces the liquidity the DXY could appreciate and put pressure on commodities in general incl. XAG. First FED speakers have already started the discussion of tapering in the public and some rumors expect an amended of FED guidance in August.
Plenty of time left for bulls? We will see.
IMHO: Are you wondering why silver is not moving above the 28 USD? Scroll to the left :)
XAG is forming right now an ascending tringle with resistance around 28 USD. The 28 USD has been the support of the massive falling triangle (from 2011 to 2013). If XAG moves above, XAG could test the ATH 48 USD and then form a cup & handle pattern to move to a new ATH. IMHO: This is the bull case. On the other hand, if XAG loses the pattern of the ascending triangle XAG could see a massive sell-off.
What would be the trigger of losing the ascending triangle? The tapering discussion and an appreciation of the USD (DXY). If the FED reduces the liquidity the DXY could appreciate and put pressure on commodities in general incl. XAG. First FED speakers have already started the discussion of tapering in the public and some rumors expect an amended of FED guidance in August.
Plenty of time left for bulls? We will see.