SILVER TECHNICAL POSITION: TRENDING HIGHER

Apr 4

In my previous Silver analysis, I expected price to move lower, with the downtrend line acting as resistance and generating a sell opportunity, which it did.

After that move, price reached the primary uptrend line, found support, and broke the downtrend line with an upside imbalance. It then retested that downtrend line from above, generating good upside separation.

Additionally, when the previous low was breached to the downside, the market could not close below it. Instead, it closed back above it with strong upside movement.

All of this leads me to conclude that this market is in a technical position to move higher in the coming days, and I see no reason to look for shorts at the moment.

Apr 7

Note

I am not going to sit here and wait for a miracle with a one-sided view of the market. If this potential upside trend is not confirmed with support, I will consider that move as a minor deviation from the downside trend and conclude that the future of this market is very, very bearish.



In essence, a close back inside the downside structure reaffirms it, and the more weakness we see, the stronger the confirmation of lower prices.

If the upside structure does not hold, I expect a very large drop.

I am performing a bar-by-bar analysis. Flipping the bias is normal in this type of work; markets can shift from one moment to the next. If the downside structure is reaffirmed, it is actually better, as the ensuing drop will be brutal.

In fact, I am long-term bearish on metals, but I have been demanding higher prices from the Gold pullback before selling. Sometimes the setups simply do not trigger and the drops occur sooner than planned.