According to last week’s COT Report, the silver still holds a strong “long” contracts size position. The interesting thing to notice is that the “Producers” are putting some sell pressure in the market. This may result in a small correction towards the previous monthly critical area near 21.00000, after price got a strong rejection after the attempt to close above 26.00000.
There are 2 possible scenarios how the price should move in the next 2 weeks:
1. Price falling straight away to the monthly critical area near 21.00000 where it aligns perfectly with the 0.618 Fibonacci level. Buy pressure will kick in and we will see another move above 24.00000.
2. Price re-testing the monthly critical area at 26.00000 once more. After a second rejection it will fall to the previous one near 21.00000. Buy pressure will kick in and we will see another move above 24.00000.
Happy Trading!
There are 2 possible scenarios how the price should move in the next 2 weeks:
1. Price falling straight away to the monthly critical area near 21.00000 where it aligns perfectly with the 0.618 Fibonacci level. Buy pressure will kick in and we will see another move above 24.00000.
2. Price re-testing the monthly critical area at 26.00000 once more. After a second rejection it will fall to the previous one near 21.00000. Buy pressure will kick in and we will see another move above 24.00000.
Happy Trading!