Paper Silver at 400W MA Resistance still facing years of decline
Updated
I have been charting the bearish case for silver for about six months and this chart has popped up in one form or another several times. It is still obvious that price action is being compressed between the 200W and 400W SMAs. When price action slipped the 200W last there was basically a flash crash to 1500W. What did this legendary rally get us on the daily chart?
Our third lower high in almost 10 months. Price may still come up and test the trendline in the chart below, but it looks pretty bearish right now.
I continue to find studying the OBV with EMAs interesting. The OBV seems to broadly follow many of the fundamentals in charting with support turning to resistance and being rejected and supported by longer term EMAs. It looks like price action will work its way deeper into the wedge and the OBV will go deeper into the triangle for the next couple of years. The good news is, after silver struggles through this depression/Recession I basically see it in a massive acceding triangle. We are going to have a banger of a decade to fifteen years if I see this right.
Our third lower high in almost 10 months. Price may still come up and test the trendline in the chart below, but it looks pretty bearish right now.
I continue to find studying the OBV with EMAs interesting. The OBV seems to broadly follow many of the fundamentals in charting with support turning to resistance and being rejected and supported by longer term EMAs. It looks like price action will work its way deeper into the wedge and the OBV will go deeper into the triangle for the next couple of years. The good news is, after silver struggles through this depression/Recession I basically see it in a massive acceding triangle. We are going to have a banger of a decade to fifteen years if I see this right.
Note
Nice bearish engulfing candle on the weekly timeframe at the 400W SMA gets the price action back into the wedge. I expect that the price action will meander down to wedge support at either the 2000W or 1500W and we won't have as violent a move as we did on the most recent touch. We may trade sideways, with price action clinging to the 400W SMA for a couple of weeks before the sell off begins.
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