Is the silver rally completely over?
In short, the short-term silver price chart is one of the most boring ones throughout the entire precious metal sector. Silver did practically nothing for several weeks in a row.
The white metal tried to move above its 61.8% Fibonacci retracement and the $24 level many times, but it failed – over and over again.
Silver clearly doesn’t want to stay above the $24 level or its 61.8% Fibonacci retracement, suggesting that the rally is now completely over. We’re simply waiting for the slide to start.
Interestingly, the above-described flat top in the silver price is being formed right after it outperformed gold and mining stocks on a massive scale – throughout December 2022. As you may recall, silver’s short-term outperformance of gold is a bearish indication, as we have already seen.
This further strengthens the scenario, in which the rally in the PMs is pretty much over or about to be over and the markets are just waiting for a good “excuse” to start another powerful decline.
Przemyslaw K. Radomski, CFA
Founder, Editor-in-chief