The 2018 decline in precious metals

January 10, 2018 10:45 AM

The increase in volume during yesterday’s downswing also has bearish implications.

Today’s comeback to $1,325 or so doesn’t invalidate the above. Both: April and June tops in 2017 were followed by a quick rally that didn’t change the overall trend. Consequently, today’s pre-market strength is not an anomaly – it can be viewed as something normal.

 

In yesterday’s alert, we wrote that silver had already erased the preceding 2018 gains and based on yesterday’s session we can add that we’re now witnessing the 2018 decline. Overall, silver is 13 cents lower so far this year. Not much, but it seems significant given that moving into a new year also meant moving into a new trend.

Of course, it’s not yet clear that a new trend has indeed emerged, but two daily declines after a series of daily upswings are something that shouldn’t be ignored.

Today’s comeback to $17.15 or so doesn’t invalidate the above – this year’s move lower is confirmed in terms of the closing prices, while today’s pre-market upswing doesn’t carry as much weight.

The Stochastic and RSI indicators continue to support lower silver prices in the coming days and weeks.

Please note that the volume increased during yesterday’s decline, further increasing the odds of a continuation of the decline.

 

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