Rising Wedge, Price Targets for Silver

Something I forgot to point out yesterday was the rising wedge pattern on the SLV chart. The wedge pattern is recognized when prices stay within a channel and makes higher highs and lower lows. It is a form of a bearish setup where price activity rises and reaches new highs faster than the last high after each low is made. It is also important that the reversal in the trend where the price breaks the channel is on high volume.

The price activity near the beginning of the move frequently touches the low points but hardly makes it close to the top of the price channel. However more recently, it has reversed course and begun to trade closer to the top of the channel, and in doing so, it gained the roughly same amount of points in two weeks than it did in the previous month and a half. Immediately after, it gained over two points again in just one week, confirming the wedge. The reversal came and on record volume, drove the price lower. I think if 24.06 breaks and sustains, then we could be looking at 21.97 as the next support level but I won’t rule out the bottom of the last cup, which rounded out in the 22.50 range.

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

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