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Review Of Silver: Trend Looks Bearish

Published 03/01/2015, 12:53 AM
Updated 07/09/2023, 06:31 AM

The professional investors must profit by anticipating future trends and events rather than chasing old news. This is done by following the invisible hand or message of the market. That message, the simultaneous study of the the cycle of accumulation and distribution (trend), the distribution, movement, and participation of leverage (leverage), time/cycles, and human behavior void of opinions is defined below:

The analysis below is being incorporated into future reviews for subscribers.

Trend

A rising trend supported positive trend oscillators since January (chart 1). This up impulse, however, was reversed by a bearish crossover (XO) last week. This is bearish.

Chart 1
Silver ETF And Trend Oscillators

Leverage

The flow of leverage (red arrow) has defined a bear phase since early September (chart 2). Last week sharp DI uptick confirmed its continuation.

Chart 2
SLV And Silver Diffusion Indices

Silver's leverage oscillators generated a bearish crossover last week (chart 3). This fresh up impulse sets the expectation to falling prices until reversed by bullish crossover.

Chart 3
SLV And Leverage Oscillator

Time/Cycle

The 5-year seasonal cycle defines strength until the first week of March (chart 4). The transition from up to down next week could provide the backdrop that support a bearish price trend.

Chart 4
5-Year Seasonal Chart For GLD

Latest comments

translation: speculators are selling precious metals. the last few up days were on small volume (probably retailers getting sucked in long, only to be trapped by an eventual gap down).
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