Following our highly successful foray into the future to see what would happen to the silver price, many readers have been urging me to clamber back into my time machine and go Back to the Future to see what is going is to happen in the next few weeks. However, on this occasion I have decided not to. It was not concern about disrupting the space-time continuum, or even a sudden attack of moral rectitude concerning looking at charts 3 weeks before other people get a chance to see them, but the simple fact that it isn't necessary. You see, we have all the evidence that we require in the here and now that silver has probably bottomed, or is very close to doing so, and that it is set to enter another advancing phase shortly. Let's now look at this evidence.
On silver's year-to-date chart we can see how the brutal plunge that wiped out many leveraged small silver speculators, and which enabled us to make a fortune in a matter of days, abruptly terminated at the zone of support shown in Far East markets on Monday, after which silver rallied to close the day almost at its highs, leaving behind a large very bullish "Dragonfly Doji" on its chart which we will look at a little later on the 3-month chart. The ferocity of the decline is thought to be partly or even largely due to a wave of margin calls going out to leveraged small speculators, who had been set up to be fleeced by their cheerleaders egging them on for weeks, having apparently learnt nothing from the May plunge just a few months earlier.
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