Gold is struggling, moving mostly sideways. Silver has technically been moving sideways as well, only it has formed a textbook double top chart pattern. Textbook double tops show even tops and a clear confirmation line delineated at the middle of the “M” formation. What is good about these formations is that they give us a minimum downside target.
The downside target is determined by the length of the pattern subtracted from the confirmation line. In the case of Silver, that would bring it down to prior gap support. But remember, this is a “minimum” downside target. It could fall further.
The Price Momentum Oscillator (PMO) has topped for a second time in overbought territory. Stochastics are falling. The technicals are failing on Silver, so we should be prepared for this decline to catch fire.
Conclusion: We have a bearish double top on Silver (SLV) that predicts a minimum downside target around 25.00. Prepare for more downside on SLV.
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Price Momentum Oscillator (PMO)