The Silver Miners (NYSE:SIL) have lost over 50% since the highs back in 2016. Is that large of a decline enough to present a buying opportunity?
No doubt the multi-year trend for SIL remains down at this time. The long-term decline and the decline over the past few months has it testing last year’s lows again at (1).
While testing the lows, it finds itself at the apex of a falling wedge pattern at (1). Is a “Double Bottom” being attempted by SIL at the 2018 lows? In my humble opinion, it is too soon to tell, yet kit’s possible.
What would it take to suggest that a short-term counter-trend rally is taking shape? The first step would be to break above the top of the falling wedge pattern.
What would it take to send a renewed bearish message from SIL? A support failure at (1)!
What SIL does in the next couple of weeks could send an important message to Silver and the Gold Miners (GDX (NYSE:GDX)).