The continuing sideways movement in silver is allowing more time to build a portfolio of silver investments ahead of the major bull market that we know is incubating. Right now it is being held in restraint like gold, by the dollar rallying, but that won’t carry on forever and, as is the case with gold, the dollar may be rallying against most other currencies, but they are all spiraling [down] the drain.
The original article has been edited here for length (…) and clarity ([ ])
Silver: 10 Year Chart
Like gold, silver has marked out a giant Head-and-Shoulders bottom pattern which is fast approaching completion… [as] can be seen on the latest 10-year chart below.
Before leaving the 10-year chart, another point to note is that, like gold, we have seen a steady and pronounced volume buildup in silver for over 2 years – since the final low of the Head of the Head-and-Shoulders bottom late in 2015 and early in 2016 – [and] this is very bullish although volume indicators have not fared so well as with gold.
Silver: 3 Year Chart
On silver’s 3-year chart [below] we see that it has been underperforming gold in recent months, which…is quite normal at this stage in the cycle. It is still not far off the Right Shoulder lows, which means that this is a good time to continue accumulating silver investments. Although we could see some minor weakness in the event of continued dollar strength, downside is considered to be very limited. Actually, with the price down close to support and the continued volume buildup, silver looks like a coiled spring here. When it decides it’s going to make a big move it usually happens when it’s least expected, leaving most investors watching as mere spectators.
Silver: 6 Month Chart
On the 6-month chart [below] we can see that silver is in a broadly neutral trend on a near-term time horizon…Silver is not quite ready to break out yet, and will probably wait until it gets the “all clear” from the dollar.
…To conclude, silver appears to be in the very late stages of its Head-and-Shoulders bottom and, with the price still not far off the Right Shoulder lows, we are [at] a very good point to continue accumulating silver investments – silver itself, silver coins, silver stocks and ETFs and, for those who are set up to do so and know what they are doing, silver futures and options.
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