Silver markets remain very sold off, but quite frankly look like they’re ready to do a little more damage. The US dollar continues to strengthen overall and that of course works against the demand for precious metals in general. As the market trying to rally during the day on Tuesday, the sellers came back into play and got very aggressive. Because of this, we ended up forming a shooting star which is a relatively negative candle, even at the bottom of the downtrend.
The $16.50 level has been important in the past, and quite frankly being a large, round, psychologically significant number it makes sense that a lot of traders would be attracted to it. The fact that we are sitting just above it is a pretty interesting sign, especially considering that we have sold off so drastically that the lack of follow-through on the rally during the Tuesday session tells me that traders are willing to jump back into this market aggressively.
I believe that the market breaking down below the $16.50 level should send this market looking for the $16 level next. Ultimately, this is a market that I do not trust so I believe the rally should continue to offer selling opportunities as well.
Below is my video analysis:
Add a Comment