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Gold And Silver's Pesky Counter-Trend Rallies

Published 09/21/2017, 09:05 AM
Updated 07/09/2023, 06:31 AM

Gold and silver long-term trends have been lower since their highs back in 2011. Counter-trend rallies have continued to frustrate metals bulls as they continue to fizzle out. Are current counter-trend rallies in gold and silver about to fizzle out again?

Below looks at gold and silver on a monthly basis over the past decade.

Gold (left), Silver

Both metals this month tested resistance lines that were based on old highs/lows at (1). As both were testing the underside of this resistance, they created large bearish reversal patterns (bearish wicks) at each (1).

Metals bulls do not want to see this type of pattern at resistance, while in long-term downtrends. This could also be concerning news for metals bulls, as traders have established positions where historically gold and silver were closer to highs than lows.

Latest comments

He said gold was extremely Bullish last month. Wrong
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