The big-picture view of spot silver shows the year-ago low at $13.62, which preserved the 12-year support line.
The rally from $13.62 peaked at $21.17 in July, 2016, while the ensuing give-back has amounted to 74% of the rally and is certainly considered a very deep correction.
The juxtaposition of monthly RSI and monthly MACD with the falling price structure indicates that the decline, though deep, is a correction of the Dec.-July advance, rather than the initiation of a new downleg within the prior bear phase from April 2011 to Dec., 2015.
Heavy support resides from $15.90 to $14.20, and is the zone from where silver should stage a significant upside reversal if the Dec.-July advance represents the first leg of an incomplete intermediate-term recovery rally period.
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