Tuesday, November 28, 2017

Silver Breaking Out of Triangle 11-28-17

Click on Chart to Enlarge

Silver has been trading in a very tight range for a couple months.  The chart has the appearance of a symmetrical triangle, but has experienced some choppy action at both boundaries of the triangle.

Today there was an obvious close below the lower/lowest boundary of the triangle.  This occurred with a marked increase in volume, suggesting a possibly complete triangle formation with further downside action to follow.

The chart above projects some measure type moves based upon the chart and price formation.  The early October low would be the bare minimum expected move to the downside.  But the 15.00 to 14.50 over the next 1 to 4 weeks would be a reasonable move.  That seems like a large move given recent action, but just this calendar year you can see many up and down moves on the chart which of that size or greater.


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