Below looks at gold and silver patterns on a monthly basis over the past 7 years. Gold and silver's rally since early 2016 has taken both metals back to test levels that were heavy for each of them over the past few years.
Indeed, each one created Monthly Reversal patterns in September at (2), just under key overhead resistance at (1). These monthly reversals are the largest monthly reversals for both metals in the past few years.
One-month reversals at resistance, in time, could be concerning to gold and silver bulls. A one-month reversal pattern doesn’t prove that the 18-month rally is over. Instead, the pattern could be worth paying attention to since gold and silver traders have created crowded bullish trades as resistance tests are in play at each (1).
Metals bulls would LOVE to see both break out at (1).