Please check the other analyses in the series to get a better comprehension of the picture.
What we have witnessed in the February 2016 congestion in Silver was a flag, which went at a deeper percentage compared to Gold, which looked more bullish during the period. As if to compensate this, the break-away of the congestion is more decisive with Silver, as seen in the chart, in that, the volume of the break-away day is almost as much as the 13-day MA of the volume in the midday, and the market trades way above the flag resistance. This, together with the bullish confidence coming from the index, shows a very clear bullish picture, in which the weekly TL (dashed red line) is targeted. Notice that we also had a one-day-out-of-line move on 24 February 2016, which was an early signal of the bullish break-away.
What we have witnessed in the February 2016 congestion in Silver was a flag, which went at a deeper percentage compared to Gold, which looked more bullish during the period. As if to compensate this, the break-away of the congestion is more decisive with Silver, as seen in the chart, in that, the volume of the break-away day is almost as much as the 13-day MA of the volume in the midday, and the market trades way above the flag resistance. This, together with the bullish confidence coming from the index, shows a very clear bullish picture, in which the weekly TL (dashed red line) is targeted. Notice that we also had a one-day-out-of-line move on 24 February 2016, which was an early signal of the bullish break-away.
