{"id":116820,"date":"2017-11-21T02:21:01","date_gmt":"2017-11-21T07:21:01","guid":{"rendered":"http:\/\/countingpips.com\/?p=116820"},"modified":"2018-06-01T15:49:09","modified_gmt":"2018-06-01T15:49:09","slug":"technical-analyst-sees-weakness-in-silver","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/technical-analyst-sees-weakness-in-silver\/","title":{"rendered":"Technical Analyst Sees Weakness in Silver"},"content":{"rendered":"
November 21, 2017<\/div>
\r\n<\/div><\/div>

By The Gold Report<\/b><\/p>\n

Source: Clive Maund for Streetwise Reports<\/em> \u00a0\u00a011\/19\/2017<\/a><\/b><\/p>\n

Technical analyst Clive Maund charts silver and finds the signals contradictory.<\/p>\n

At the same time that gold broke out of a coiling pattern to the upside
\non Friday, silver broke out of a Symmetrical Triangle pattern shown on
\nits 6-month chart below. Volume was lacking on this breakout, however,
\nand the same reservations that apply to the outlook for gold also apply
\nto silver, namely that its COTs look more bearish then bullish, and that
\nHedgers positions in the dollar index are still calling for it to
\nrally. On the other hand, gold proxy GLD did make a volume breakout on
\nFriday, and what’s good for gold is usually good for silver.<\/p>\n

Although
\nthese conflicting factors make the situation somewhat ambiguous, there
\nis a favorable trading setup here, because silver is still quite close
\nto the apex of the Symmetrical Triangle, so it is possible to open long
\npositions with fairly close stops beneath the apex of the triangle in
\ncase the breakout was false. Gold’s price pattern now looks quite
\nfavorable, with it looking set to run to a resistance level towards the
\ntop of an uptrend channel, and if that happens, silver should follow
\nsuit and advance towards its early September highs at about $18.25,
\nperhaps stopping short at about $18.00 for a reason we will observe on
\nits 2-year chart. Point for a stop for traders going long is about
\n$16.70.<\/p>\n

<\/center>
\nOn silver’s 2-year chart we can see that it looks considerably weaker
\nthan gold, and its trend is at best neutral overall, and any short-term
\nrally is thought likely to top out close to the upper boundary of the
\nmuch larger Triangle shown on this chart at about $18.00. Such a rally
\nwould “not be much to write home about.”<\/p>\n

<\/center>
\nAlthough a near-term rally in silver in sympathy with gold looks quite
\nlikely, we can see why it is unlikely to get very far on its latest COT
\nchart. COT positions on this chart look more bearish than bullish, and
\nany near-term rally is likely to quickly take them to extremes.<\/p>\n

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

The conclusion is that although silver may be starting a rally here, it
\nstill looks weak compared to gold, and so the rally is thought unlikely
\nto get very far, especially as it is blighted by a still rather bearish
\nCOT structure, and, like gold, continues to be threatened by a dollar
\nrally. So it looks like it will be going along with gold “just for the
\nride.”<\/p>

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<\/div>\n

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>\n

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\u00a011\/19\/2017 Technical analyst Clive Maund charts silver and finds the signals contradictory. At the same time that gold broke out of a coiling pattern to the upside on Friday, silver broke out of a Symmetrical Triangle pattern shown on its 6-month chart below. Volume was […]<\/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-116820","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116820","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=116820"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116820\/revisions"}],"predecessor-version":[{"id":116829,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116820\/revisions\/116829"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=116820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=116820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=116820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}