by Hubert Moolman
In a previous article, I highlighted how a Head and Shoulders Bottoming pattern on the silver chart suggested that the silver rally since the beginning of 2016 is likely to continue.
This pattern has now matured nicely, thanks to the retrace to the breakout area. Below, is a silver chart (all charts from tradingview.com), with that pattern and the retrace to the breakout area highlighted:
[…] On the chart, I have highlighted the breakout as well as the retrace to it. Interestingly, there is now a flag formation. A breakout at the top of the flag will be the beginnings of an explosive rally. There is of course still a possibility of a return to the retrace area before that happens.
The next leg up will be far more intense than the rally since the beginning of the year. This is because the above pattern is at the trigger point, of a larger pattern on the silver chart previously pointed out.