Silver Update

Below is a line chart for silver that shows last 8 months of price action. There are 3 H&S patterns that stick out like a sore thumb. The first one was the bottom made back in June that led to 10 point move before the top came in and reverse the uptrend to down.  The next H&S was a consolidation pattern that formed about halfway down to our most recent lows right in the middle of the bullish falling wedge. Now we have our current H&S pattern that is  showing the bottom of the latest move down from the 44 area. You can see it has broken the neckline and the downtrend rail and is currently backtesting from above.  SLV is currently a low risk setup for a buy.  One more note of interests is the huge positive divergences that are taking place on the RSI indicator at the top of the chart and the positive divergence on the MACD at the bottom of the chart.  As we are coming off a major low there is some overhead resistance that silver needs to overcome before getting back into a full blown rally mode but it has already taken out a major downtrend rail and has broken the neckline of the inverse H&S bottom.

Silver daily line chart showing 3 H&S patterns and our recent breakout and backtest taking place, red circle on chart.