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Let me start with this…One mornings action “Does Not” make a trend!
This chart looks at Silver over the past few years. Silver futures have done well to start this year. The 90-day rally has Silver facing 3-year falling resistance at (1). It is making an attempt to change the down trend, of lower highs and lower lows right now.
As Silver is testing falling resistance, so far this morning Silver is creating a large reversal pattern at (2), which is taking place at falling resistance (1).
For sure, one mornings action doesn’t make a trend.
The Power of the Pattern would suggest that what Silver does at (1), is pretty darn important, for where Silver will be weeks from now. Metals bulls, this is a place where you don’t want to see weakness start taking place!