More downside for now but….
Silver appears to be heading to its new 5-year low but the selling momentum is waning.
Like Gold (see 5th November issue), Silver could also be heading into a significant low as it appears to be forming a large bullish wedge pattern.
Sentiment on both precious metals are negative and potentially at extremes in our opinion, a level where reversal are likely to occur.
Price-wise, we expect a bounce in the near term, likely back up to retest the 50-day SMA before another leg lower to below the August low of 13.9840.
The next leg down could potentially take prices towards the 13.0000-13.4000 next, where the former is the lower end of the wedge pattern.
With the longer term charts showing a slowdown in selling momentum,
the next major move to above 16.3675 would confirm that a significant rebound is underway, targeting at least 18.000. 2016 is likely to be a good year for both Gold and Silver. (Read Report)
Source : CIMB Research
Labels: Technical Analysis