Silver Price Set for Explosive Reversal Higher?

Since 2011 the general trend in silver price has been down. Recently the trend has accelerated. A number of figures known within the silver community have called for the price to decline further, including:

• Peter L Brandt: $16.15
• Don Harrold: $17.50
• Chris Marchese: $17.50
• Louise Yamada: $14.00-$15.00

Peter L Brandt recently wrote a post demonstrating that looking at silver using classical chart principles, it becomes apparent silver has been in a bear market since April 2011.

Given the strong downward bias, and analysis indicating a continuing decline, it's hard to see the trend reversing. 

However, BrotherJohnF in the video below, makes the case - using technical indicators, that silver is more oversold now than in 2008.

BrotherJohnF analyzes the silver price using the Directional Movement Index or DMI. What is the DMI?

An indicator developed by J. Welles Wilder for identifying when a definable trend is present in an instrument. That is, the DMI tells whether an instrument is trending or not.

Normally the DMI would be used to indicate trends. However, BrotherJohnF uses DMI as a counter-trend indicator. What does that mean? It means, he uses DMI to gain insight into whether silver is about to change price direction - in this case, when silver resumes an uptrend in price.

The DMI indicates that silver is now more oversold than it was during the 2008 "crash". Given the probability that the current (or not too distant future) silver price low will be higher low than the 2008 one, the price trend reversal could be explosive, and seems to imply the silver price high will be a higher one as well. See the video below and decide for yourself.