Silver is one of the big winners in July as precious metals gained on USD weakness and extreme central bank policies. While the Fed assured investors yesterday that it would do everything to support markets, Silver failed to break higher. In fact we see the 2 large doji candles on the D1 chart. Following a rally, such candles could herald troubles as they indicate hesitation among the buyers.
Having said that, similar patterns were a bit inconclusive in the past. In 2010 the big Silver rally (that lasted into 2011) resumed right away. In 2016 the candles indeed capped the rally but the market still consolidated at the highs before moving lower. To conclude, such formation can herald troubles but even a correction does not mean the longer term prospects for Silver must change.
