Precious metals prices have languished in a sideways pattern since peaking out in July 2020. Could this sideways trading pattern be a bullish consolidation pattern?
Today’s chart takes a look at the long-term monthly view of silver.
As you can see, silver has spent several months trading between the 50% and 61.8% Fibonacci levels at (1). But this month, silver is attempting to create a bullish reversal pattern at (2). Continued strength into month-end could return the luster to precious metals.
This is a pivotal spot for silver. A turn higher here would be bullish for gold too.
Silver and gold bulls would receive very discouraging news if support breaks at (2).