Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Silver: Has a Top Already Formed?

By Sunshine Profits (Przemyslaw Radomski, CFA)CommoditiesDec 01, 2022 07:03AM ET
www.investing.com/analysis/silver--has-a-top-already-formed-200633006
Silver: Has a Top Already Formed?
By Sunshine Profits (Przemyslaw Radomski, CFA)   |  Dec 01, 2022 07:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
Gold
+0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Silver
+1.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Silver outperformed gold in quite an impressive way. However, can this really be considered bullish, or was it in fact just a correction?

Yesterday’s session was nothing particularly new except for silver’s performance.

Silver Daily Chart
Silver Daily Chart

The silver market truly soared on an intraday basis, especially relative to gold. This is what we most often see at the tops or very close to them.

The Buying Frenzy

The reason is that the silver market is much smaller than the gold market is, and in addition to the above (and in relation to it), silver is much more popular with the investment public. The latter tends to buy close to the tops and sell close to the bottoms. Consequently, the particularly strong performance of the white metal indicates that the investment public is “buying like crazy,” and this, in turn, is a sign that a top is being formed. That’s what we saw yesterday.

Interestingly, silver’s rally yesterday was accompanied by yet another daily rally in the main stock indices. The S&P 500 moved above 4,000 once again, especially initially, and it was during this sharp rally that silver rallied the most. This tells us that perhaps similar buyers (the investment public) were buying stocks, and it serves as a small indication that stocks might have topped as well (or that they top in stocks could be just around the corner).

Technically, it was yet another move to the 50% Fibonacci retracement, so it didn’t change anything. The only new indication was gold’s outperformance, and it has bearish implications.

When looking at silver from a long-term point of view, it’s still obvious that the recent move higher was most likely just a corrective upswing.

Will There Be a 2022 Repeat?

What happens after corrections are over (as indicated by, i.e., silver’s outperformance)? The previous trend resumes. The previous trend was down, so that’s where silver is likely headed next.

Besides, the long-term turning point for silver is due in several months, and if silver repeats its previous 2022 decline, then it will bottom close to the turning point and also close to its 2020 low – in the first half of 2023.

It’s likely to repeat its previous 2022, because that’s what tends to happen after flag patterns, and what you see on silver’s short-term chart between September and yesterday appears to be a flag pattern.

Consequently, the current silver price forecast remains bearish, as does the outlook for the rest of the precious metals sector.

Silver: Has a Top Already Formed?
 

Related Articles

Silver: Has a Top Already Formed?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Bernd Langer
Bernd Langer Dec 04, 2022 10:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Short answer: No
Robert Milling
Rob1287 Dec 03, 2022 11:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another bear article from the russian bear. I bet he constantly predicts a russian victory in Ukraine too. How many radomskis does it take to constantly predict silver and gold will go down never up. Just one.
Bernd Langer
Bernd Langer Dec 01, 2022 9:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just wonder how he can sleep at night with his short positions - if he has any ?!
Alan West
Alan West Dec 01, 2022 9:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Because precious metals are a terrible bet.
Al SENT
Silverlightning Dec 01, 2022 3:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Waw..Impressive ..Not read one single article from Radmoski that was even slightly bullish for precious metals..Why is that? .Disapointing
Jack Sailor
Jack Sailor Dec 01, 2022 3:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
exactly.
Domenic Ng
Domenic Ng Dec 01, 2022 3:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He shorted PM
Dwain Hobbs
Dwain Hobbs Dec 01, 2022 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
515 bearish articles from Radomski ,, and gold and silver keeps flying high ,,, admit it dude , you are just bad at this ,, REALLY BAD !
Crim Jamer
Crim Jamer Dec 01, 2022 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
he's bearish at 28, 17, nothing matters
Crim Jamer
Crim Jamer Dec 01, 2022 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
His real name is RaNdomski!
Alan West
Alan West Dec 01, 2022 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Gold and silver “flying high”. Haha get a new set of glasses.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email