Silver

Since silver broke its intermediate trendline, it has started a minor reaction in a downtrending channel within a broad horizontal range 33.60 - 38.60. This broad horizontal range is increasingly resembling a bear flag. This bear flag measuring target is 22.50, which is the primary trendline below.


There is a parallel from present price action with the 1979-1980 period when silver almost touched $50. This was shortly followed by a fall towards $20. However back then the reason for the sharp drop was the CME raising margin requirements excessively to drive the Hunts out of their silver positions. Presently there is no one single investor monopolizing the market.



Troublingly from a contrarian perspective, a Bloomberg survey on Monday indicated that the median expectation of 100 commodity analysts is for silver to rally back towards $50 by end year.

Good luck all!