“The Bigger the Base, the Greater the Upside Case. This saying among technical analysts/chartists helps define where we are today in the precious metals – and where we’ll soon be headed.
It means that when prices ‘base’ in a relatively narrow sideways range for an extended period, they will at some point break out. Before the action gets underway, bears and bulls alike will get ‘sandpapered’ as they take positions, trying to guess whether or not the price is getting ready to decline further or move upward into a new bull phase.”
MK note: In an argument that looks similar to Clive Maund’s as highlighted in the August edition of News & Views, tech-analyst Smith believes an upside breakout is in the offing for both gold and silver.