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(Source: EquityClock.com)
Beginning with seasonality, we can see that silver followed its typical seasonality traits quite well to start the year, with a near parabolic rally out of the gate in January, though, it peaked earlier than expected in February vs. March typically. Silver then peaked again in Q2, which is typical of the metal, before wading through its seasonally weakest period: May to July. Unfortunately, the June softness persisted into Q3, which has caught several investors off guard. The silver lining, though, is that silver is now less than a week away from a period where it often makes it H2 low, with this low typically arriving in the 2nd week of October. If December 2021 is anything like December 2020, then the bulls should have a strong relief rally ahead, with silver up 15% last December and 12% in Q4. Obviously, there’s no guarantee that silver follows its seasonality traits. Still, the expected seasonal low is also arriving at the same time as a sentiment buy signal, placing more weight on a potential bottom.
