by Clive Maund
Silver Seek
Having hit a target silver has formed what is believed to be an intermediate top over the past 5 weeks or so, which it should soon start to descend from.
On its 3-month chart we can see this presumed topping pattern started with the appearance of a prominent “Gravestone Doji” or “Shooting Star” candlestick early in July, with its negative implications being amplified by its having occurred on very high volume. While moving averages are in bullish alignment, the now yawning gap between the 50-day and 200-day makes a correction likely. After dipping back during August, the price rallied towards the highs early this month, and then failed, dropping hard on Friday, making it very likely that a Double Top is completing.