Monday, 20 July 2015

Gold plunges below $1100 then rallies from medium term trend channel support

Silver rallying from test of dual trend channel support?

Daily chart first. Will Silver rally further from today's test of dual trend channel support?

Weekly chart supports the view that Silver may rally from here. Yes, there is no doubt that Silver remains in a solid down trend. Yet it has only consolidated for 7 months from it's December low, a relatively brief period compared to the periods of consolidation that began in 2011 and 2013. To state the obvious, a longer period of consolidation requires the market to rally now so that the December low holds. Let's see.