The chart above is the same chart that I posted on June 30th. On the 30th, I highlighted this chart warning people that a short squeeze was coming. I explained that we were in the early stages. During this time the bearish sentiment was at an absolute extreme and these statements were going against what the mainstream would have you believe. A little over one month later now, the VC numbers has held true and it appears to have given us an optimal entry point for what appears to be a major bottom in the silver market. Now lets look at the weekly charts.
This chart shown in Heikin Ashi demonstraes the bottom in silver being formed. The last four weeks have posted green Heikin Ashi bars signaling a change in trend is occurring. This, along with the monthly VC, gives us strong evidence that a serious bottom is forming. The RSI is pointing up and is giving us an indication that the energy beneath this market is building. This indicates a big move is coming. Now lets look at a daily VC chart.
It is not all that often that the S2 or B2 levels are broken on the VC. Usually this is a strong indication that energy beneath the market was able to push the market to the next fractal and essentially break the Code. This is rare and the fact that S2 was broken is another major buy signal.
This article is brought to you courtesy of Thomas Calvert from Equity Management Academy.