by Scott Pluschau
Scott Pluschau’s Blog
There was some major downside price rejection yesterday in Silver which can be seen clearly in the bull “Hammer” daily candlestick pattern. This should make the bears think twice about their prospects. There is potential here for a near term change in trend, but it is important to remember Japanese Candlestick patterns are useless without confirmation.
The problem for the bulls is silver is still trading beneath the breakdown point in the “Descending Triangle”. This is now a minor resistance area. The way things look right now, trading to the long side with my methodology would have a “negative expectancy”. I have no issues watching silver go up today and have zero participation. I discussed the forming of the descending triangle pattern here: http://scottpluschau.blogspot.com/2012/04/bearish-pattern-of-day-silver.html