A brief update on silver during this market off-day in the US (R.I.P. Mr Carter, a classy human). The battle between the would-be bullish Cup & Handle and the would-be bearish Head & Shoulders pattern continues and is super interesting to we nerds (or at least me nerd).
Let’s remember that these short-term bullish and bearish potentials are occurring within the context of the bullish breakout from a base that took the form of an Inverted H&S. Full context is not shown on this chart, but the break happened in April of 2024 and was tested in May. So even if the bearish H&S potential turns to reality, it only projects a test of that bullish breakout, as opposed to a long-term failure.
I think that the unresolved patterns beg some patience because the silver price is not far from a bull trigger (break above the blue SMA 50 and the Cup handle’s upper trend line) and a bear trigger (the SMA 200 and the H&S neckline).
There are of course other considerations like the bullish seasonal and the negative internal situation with silver biased bearish vs. gold. But nominal chart TA is my first love in markets, and sometimes I forget to keep it just that simple. Silver’s TA says bull or bear trigger upcoming.
