Here we have a potential sell signal in Silver. I wrote the other day about Gold being a prime setup for a decline. Silver and Gold do trade together, and this market appears to be a tad weaker than Gold, so that is where I am looking to get short.
If yesterdays low were to go today, we would have a valid short entry, indicated on the chart. This may look like a basic 1-2-3 pattern, and I suppose it is technically. However, with a 1 -2 - 3 you really want the first leg to break a trend line and this has not done that.
This market is setup fundamentally, seasonally, and now we have a chart pattern. As a result this is a trade that has to be done win, lose or draw. We never know from trade to trade which ones will turn out to be the gems and which will be coal. I spend alot of my waking hours trying to pre-determine this to no avail.
As to the Gold Bugs that I have argued with recently, there is no way of knowing if this will just be a trade or a major decline. However, the fundamentals say a large decline. Time will tell. I still maintain that if you are someone who has had the foresight to have bought Gold or Silver in bullion or coins, you have had a tremendous run.
Don't get greedy