I have posted this before but since the price of silver now is in a big formation that looks like the one in 1970 it’s important to take another look. I believe there is a possibility that they will smash silver below the support level in the next 3-4 months in an attempt to flush out weak hands.
Silver is currently in a very large triangle formation (link to chart) that looks similar to the one we saw in 1970 before the final bottom in the price, see chart below:
Back then, silver did break down big time (-20%) and investors who only looked at the technical picture might have sold their positions just before the epic historic rise in the silver price of over 3,000 %, bigger picture chart below:
This is what happened then and is a big warning sign for those trying to take technical analysis too seriously instead of focusing on fundamentals. TA looked bad, FA looked great, the same pattern might played out now about 45 years later, looks at the similarity in the formation:
There is a possibility that silver breaks down in the next few months and with a 20% drop that takes silver sub $14/oz before a potential final bottom. In my opinion, a breakdown in the chart should be bought since the fundamentals looks better than ever, as in 1970.