Sunday, 1 May 2016

Silver's outrageous bull market pitchfork (and comparison with gold's).

OK, this one is for silverbugs:

Here is my outrageous pitchfork that stamps a bull market on silver that never ended, despite the 70% correction. Just for fun! Silver can go just below $16 again and not negate the pattern. Note the price support action since the December 2015 low has the same slope as all the price support between October 2008 and September 2010 before the bubble phase began:
silver outrageous bullish pitchfork dont care

The median line of this pitchfork has so many hits that it looks very good to me. Also the price top at $50 absolutely mandates the position of the lower line that has just been hit by the December 2013 lows. It could have hit a bit sooner or a bit later. Even so, this is not quite the same as my bullish gold fork. In the silver one the $26 level is key as is the reversal from support to resistance along the blue median line. The bear market Point Of Recognition started at the $26 level of horizontal support but was triggered by the move below around $30 on the blue line in early 2013.

With gold, the median line goes straight through the POR; not quite the as for silver I don't care. These look good to me; good enough for now anyway. Symmetry of the action and reaction lines on the gold chart also adds to the juice:


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