By Chris Diodato – TradersBase.com
Today we’re checking out the precious metals market. I had a request a few days ago to analyze silver, which I did. What I found was a huge descending triangle in silver, and something very similar in gold.
First, this formation is huge! For those of you familiar with technical analysis, you probably have already mentally calculated targets of at least $50 or $7.50. per ounce. So where’s it going to go? Not sure yet for the long term. However, I can tell you where it’s going in the short term. Notice the bullish divergence in the picture with the RSI. The same exact scenario happened in 2011, right before silver jumped nearly 50%.
And of course, here’s the video with the analysis of silver and gold. Also included is ratio analysis of the two metals, and implications for the overall economy.