Silver is Just A Shiny Mess

• Posted by Greg Harmon
• on June 4th, 2014

A quick check in on cheaper shiny metal Silver, $SLV, shows nothing but downside. This seems even worse than Gold which has been trying to hold onto support. Take a look at the weekly chart below. There was a descending triangle started in September 2011 and continued for all of 2012 that finally broke lower in April 2013. That break targets a move to 8.60 which is yet to be achieved. But along the way it started another descending triangle in September 2013. September is a bad month for Silver. This triangle has been tightening and is making a 5th touch now, on the bottom support. A break lower on this one targets a move to 12.30. This would take it about 2/3 of the way to the initial target lower near 8.60. And there really is nothing positive about this chart. The RSI is heading lower along with the MACD. There is really no reason to own Silver today other than as jewelry.

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