Silver is extremely weak lately. No surprise, the USD is refusing to move lower. The intermarket effect of the USD on precious metals is pretty strong. We do expect silver’s chart to turn into an inverted head & shoulders setup. Yes, we continue to be bullish silver, strongly bullish even. Our silver forecast was partially achieved earlier in 2022, but our upside targets remain intact if not for 2022 then for 2023.
Gold and silver are being hit lately. Admittedly, they are facing a hard time amid a strong USD.
Will it get worse? It depends, if the Euro Will Undergo An Epic Breakdown we will see lower precious metals prices. We don’t think it will happen, it won’t get extreme is what we are thinking.
We don’t exclude a head & shoulders pattern in the USD.
IF (a really big IF) this is the pattern that is in the making, we will see an inverted head & shoulders in silver.
Our silver chart which exhibits the 3 month silver cycles is about to conclude this current 3 month cycle, near the lows of the cycle. Can you see the first part of the inverted head & shoulders? We do! The current and next 3 month cycle might be the reversal cycles which, IF true, would be insanely bullish long term.
The silver CoT report confirms the long term bullish outlook for silver.
