SILVER has finally broken out of it's six month long triangle pattern. But is this breakout valid or just a whipsaw let's find out
Volume:
Volume is undoubtedly the BEST indicator when looking for legitimacy.
If we look at candles of the volume we can see that the volume has been accelerating towards the bearish side for the entire triangle formation, and the breakout has pushed the bearish volume even further. This tells me that the breakout is supported by volume.
Another more detailed picture:
RSI:
The RSI is showing a bearish divergence from the entire time it's been between the 30$-20$ range. Which is even another indicator that supports the breakouts legitimacy.
Stochastic
Now the stochastic has bottomed out around the 20 level which gives me the insight that the breakout will most likely try to test the lower triangle trend line, emphasis on try, it might not reach it but it will most likely try.
So in conclusion. Short term I think the price will try to retrace which is why I won't commit entirely to a position right now. Intermediate term silver is definitely bearish, the breakout has many strong signs indicating it's legitimacy and the price will soon tell the tale.
Volume:
Volume is undoubtedly the BEST indicator when looking for legitimacy.
Another more detailed picture:
RSI:
Stochastic
So in conclusion. Short term I think the price will try to retrace which is why I won't commit entirely to a position right now. Intermediate term silver is definitely bearish, the breakout has many strong signs indicating it's legitimacy and the price will soon tell the tale.