In yesterday’s analysisI wrote the following:
Technically, immediately after a collapse, stocks are below the head-and-shoulders pattern, which is a sell signal. BUT it is also true that this pattern tends to be followed by a correction, and this correction could be exactly what is needed to spark the eventual rebound in the precious metals sector.
This corrective rebound could start soon, but the November lows are at around 5,700, which is a fairly round number, adding to their technical strength.
So unless I see something deeply bearish and the above theory is debunked, I plan to be long silver when the S&P 500 moves to or close to 5,700.
The above didn’t materialize, but the negation (in intraday terms) of the head-and-shoulders pattern is even more bullish, so the implications are the same: it’s time to go long silver.