Here is a friendly Friday morning reminder: Price has memory.
Over the past few weeks, I have mentioned the overhead supply concept. Recently, I did it earlier this week in this post (click on that hyperlink to see it explained).
We have been playing the utlra-short silver ETF inside 12631.
Updating the silver daily chart, we can see the overhead supply continuing to assert itself. The gold miners also faced a similar setup a while back.
The initial churning or move down is expected. But after that, these charts should reveal whether the metals and miners are going to make another bear market low, or continue with the snapback higher.
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Had I listened to you “overhead supply” call..an easy 10% in 2 days was there for the taking!!
It does not always work out that way, but more often than not it is a major factor.