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Silver futures falling into 40 week cycle low
In this analysis I take a look at:
$SI silver futures
In the last two major peaks, with this week's included, silver has shown weakness and inability to rise into the last of its peak components. It cannot fulfill cycle projections higher.
Silver is having a hard time picking up buyers, its as simple as that.
The last evidence of a big peak was in early March, where metals sold off, and silver futures dropped from $27.50
The thing we want to figure out is: “where is the next 40 week trough?”
The problem is I dont have a reliable trough count or phasing for silver, its very erratic.
My plan is to wait for a basing pattern due end of June, and trade long.
The recent bearishness is due to that 20 week peak from early March, it is quite strong across all commodities.
Is it temporary weakness? Is it easily understood?
I think that silver has such bad cyclical action, that one should not even trade silver. But if one has to, it's best to wait for the 40 week cycle to complete starting from the monthly lows of last year.
I believe it's all about waiting for the 40 weeks cycle to complete end of June and then perhaps price can go back to the highs even higher.