After the big correction in September Silver seems to have found a bottom. Coincidentally the Dollar has found a top. It is important to understand that in a bull market gold and silver trade more like currencies rather than commodities and are massively influenced by the gyrations in the DXY. At this point Silver is above its 21 monthly and weekly EMA and the bullish trend is very much intact. On a shorter 1 and 4 hour time-frame price action is generating higher lows and is testing the 24.20 level. The region between 24.20 and 24.40 was established as significant all the way back at the beginning of August. Should the price close above 20.40 on the 1 hour time-frame a move up to 26.20 is quite possible. However, this will only happen if the DXY resumes its downward move. The current setup looks bullish but, if market sentiment shifts more toward fear again we could easily see a retest of the lows.
The above is not trading advice, but simply my thoughts on the current market. Take everything you read here with a grain of salt and use your head.
The above is not trading advice, but simply my thoughts on the current market. Take everything you read here with a grain of salt and use your head.
Comment:
And clear enough there is a big fight going on between 24.20 and 24.40. The pattern looks like a continuation, but the trigger will be the dollar and its weakness.