On March 7, 2024 it was noted that a confirmation move above silver’s ascending triangle was needed before both metals are expected to move higher. The chart below illustrates a technique used by Market Makers to distribute their inventory to retail investors. Prior to the move up in April 2024, short term computer algorithms were initiated by Market Makers to accumulate inventory. A move upward was then made for distribution trades between April 2, 2024 and April 3, 2024. Silver is still expected to stay within its ascending triangle based on the need to fill a futures market gap created on March 1, 2024 at 11:05 a.m.
“If specialists want investors to buy stock, they simply raise stock prices sharply. This creates demand. If they want to cause massive selling, they drop prices precipitously. It is merely a problem in engineering.”
Richard Ney, Making it in the Market, 1975, page 85
Note that the chart shown below is for research purposes only and is not a recommendation.
Stock chart courtesy of StockCharts.com.
