Going down, down much stronger. I wonder what'll stop it. It's been 23.28 $ already today... Can't see any major factors before the Sept.17-18 FOMC meetings...
A double top can be a useful reversal pattern to look out for when an uptrend could be getting exhausted. It's usually mentioned when there has been a significantly bullish trend. A minimum of a few months but im used to hearing it applied to a more sustained bull trend. Then there has to be a decline from the first top that is significant relative to the size of the uptrend. That also takes significant time. Then as the potential second top forms you're looking for other signals like lower volume, indecisive or reversal candles, momentum indicators that show weakness. Finally you only get confirmation when the price makes a low thats lower than the low between the tops. The term just doesnt apply to anything currently in the silver picture
What did I say, what did I say? It's dippin'. Silver barely above 23 $! News: http://www.kitco.com/news/2013-09-05/KitcoNewsMarketNuggets20130905-kitco-market-nuggets.html http://www.kitco.com/news/2013-09-05/KitcoNews20130905JW-UPDATE.html As for double-tops: they can occur in shorter periods as well - at least in case of forex, yes. There are larger and smaller ones as well. Even within each other (!), sometimes.
Silver has hit to $23.07 twice now..however gold dropping below the 1370-1375 level does make me think we're due for a significant pullback. I'd like to think gold won't drop past 1340, as this was a tough spot to break on the way up. Silver should drop more, as usual, say to 21.50 maybe, but shouldn't be lower. JMO, DYODD
I agree with you, Dustin. I don't expect sub-20 silver, but 21-22 $ could be the next bottom. Less than 2 weeks and we'll see what the Fed decides. I'm curious what Kitco's experts will predict for next week. I think it was time for a correction.
Perhaps you could describe exactly where the two tops in question are , because it doesnt leap out of the page from what you have said
"Perhaps you could describe exactly where the two tops in question are , because it doesnt leap out of the page from what you have said" where is the problem with providing a picture? If you don't know how to do it - just ask. It is very easy to take a shot of the screen you are looking at (in most cases) draw a couple of circles or squiggles on it and post - then we know what you are talking about -- for me, so far, I haven't got a clue what you are talking about. have a great day all gazza
August 27th(?) Silver spiked to a high of a little over $25/oz. It then retreated, making a low at $23.07 before coming back up to a high of ~$24.50 on Sept. 3(?) If you look at the 30 day chart of silver on www.goldprice.org, you can see we made a high in late August, then a lower high in early September. While we have seen a lower low when it comes to the daily close, we have seen spike lows to $23.07 and $23.06(?), which is not a lower low, yet. We have also seen the same pattern in gold, however gold has made a lower low. This is bearish short term, imo. Remember, always dyodd before making any investments, and please don't take my opinion as advice. Im just some random American
Lol mate, I know you're not the one rabbiting on about a 'double top', but that's preposterous suggesting those two points amount to a DT reversal pattern
I'm an amateur, and have never claimed otherwise Was just explaining what I thought the OP was about. I also don't think this would be a major reversal in trend, just a sign that the strong rally was over and we are due for a correction
Great! So many requests for an image. Here it goes... Friday, September 6th: Source: Kitco.com Now look at the last section on the right. It does resemble a reversal pattern double-top formation. I never said there is a double top, but it might be forming. And behold: it dipped and now the two humps are visible. Again, I'm not guaranteeing, just that one has to pay attention to these too... I was merely watching Kitco's charts, but even on that simple chart you can observe double-tops, double-bottoms, Elliott waves and others forming. The trend was long enough for a formation like this to appear on it. I believe it could drop lower, probably even to 20 $, but 21-22 $ is very likely. I am not expecting sub-20 $ silver at the moment. But a good correction might happen and that's a great buying opportunity for stackers who missed the 18-19 $ low. Also: gold dropped to the 1,360's, which is very low after having surpassed even 1,410. Very volatile! I am just putting myself the question whether a real new bear market is beginning or, whether we're just seeing more volatility with high jumps on the PM market. Experts have been talking about more volatility this year, jumps of 100-200 $ up and down. Maybe here it is.
While I'd hesitate to call it a double top, there are definitely indications of downward forces (although they may have already played out). The biggest tell was the huge bearish divergence on the 4hrly/MACD. Pity I was isolated from the world O/S for this one.
No it doesn't. A double top pattern is a formal term with a meaning and what you have pointed to does not fit the bill. There was never an appearance of a double top forming. 'Behold' nothing at all except one short term peak then another short term peak which is lower If someone showed me wrcmad's chart with comment 'maybe a sloping head and shoulders pattern that has broken its rising support line' I would have been forced to listen
So would I be correct in saying that this is not considered a double top specifically because it never got back to that $25 level? If it had broken $24.50 and gotten to $25, then dropped back to $23ish, then it would be a double top? Like I said, I'm an amateur here to learn..
