{"id":115695,"date":"2017-10-30T15:48:55","date_gmt":"2017-10-30T19:48:55","guid":{"rendered":"http:\/\/countingpips.com\/?p=115695"},"modified":"2018-06-01T15:53:34","modified_gmt":"2018-06-01T15:53:34","slug":"is-silvers-underperformance-a-positive-sign","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/is-silvers-underperformance-a-positive-sign\/","title":{"rendered":"Is Silver’s Underperformance a Positive Sign?"},"content":{"rendered":"
October 30, 2017<\/div>
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By The Gold Report<\/b><\/p>\n

Source: Clive Maund for Streetwise Reports<\/em> \u00a0\u00a010\/30\/2017<\/a><\/b><\/p>\n

Technical analyst Clive Maund explains why he sees silver’s prolonged underperformance as the sign of a bottom.<\/p>\n

Like gold, silver now appears to be completing an intermediate
\nHead-and-Shoulders top that we can see on its latest chart below, within
\na much larger and very bullish Head-and-Shoulders bottom pattern. Both
\nthese Head-and-Shoulders tops are related to the Head-and-Shoulders
\nbottom that just completed in the dollar index, that we look at in the
\nparallel Gold Market update<\/a>.
\nWith the dollar index having just made a convincing breakout from its
\nHead-and-Shoulders bottom, and looking set to rally to the 97 area,
\nsilver looks set to react back, probably to the $15.50-$16.00 area,
\nbefore reversing to the upside as the dollar turns lower again.<\/p>\n

<\/center>Unlike gold, silver’s COT structure showed further deterioration last
\nweek, and readings are now at levels that are construed as bearish.
\nThere is plenty of room for improvement, which will come about if the
\nsilver reacts back as expected on a continuation of the dollar rally.<\/p>\n

<\/a><\/center>Click on chart to popup a larger, clearer version.<\/p>\n

Like gold, silver is marking out a giant Head-and-Shoulders bottom
\npattern, but in silver’s case it is downsloping as we can see on its
\n8-year chart below, which reflects the fact that silver tends to
\nunderperform gold at the end of sector bear markets and during the early
\nstages of sector bull markets. Prolonged underperformance by silver is
\ntherefore a sign of a bottom. This chart really does show how unloved
\nsilver is right now, but although the price has drifted slightly lower
\nover the past several years, volume indicators have improved, especially
\nthis year, a positive sign. A break above the neckline of the pattern,
\nthe black line, will be a positive development, and more so a break
\nabove the band of resistance approaching the 2016 highs. Once it gets
\nabove this it will have to contend with a quite strong zone of
\nresistance roughly between $26 and $28. Over the short to medium term,
\nhowever, as discussed above, silver is likely to first react back to the
\n$15\u0096$15.50 area on a dollar rally.<\/p>\n

<\/center>Clive Maund<\/i><\/a> has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.<\/p>\n

Want to read more Gold Report<\/i> articles like this? Sign up at www.streetwisereports.com\/get-news<\/a> for our free e-newsletter, and you’ll learn when new articles have been published. To see recent articles with industry analysts and commentators, visit our Streetwise Interviews<\/a> page.<\/p>

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Disclosure:<\/b>
\n1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
\n2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer<\/a>. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.<\/p>\n

Charts provided by the author.<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

By The Gold Report Source: Clive Maund for Streetwise Reports \u00a0\u00a010\/30\/2017 Technical analyst Clive Maund explains why he sees silver’s prolonged underperformance as the sign of a bottom. Like gold, silver now appears to be completing an intermediate Head-and-Shoulders top that we can see on its latest chart below, within a much larger and very […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-115695","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=115695"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115695\/revisions"}],"predecessor-version":[{"id":115700,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115695\/revisions\/115700"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=115695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=115695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=115695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}