The silver market has been fairly active over the past week, and it’s likely to find some new direction in the coming week; even after a slow start with Labor Day in the USA.
The chart above says a lot about the silver market as of late, trending and consolidating. At present the silver market can’t seem to make its mind up other than trending lower, and there is still plenty of room to trend lower. But, more importantly, there are large patches of consolidation for traders – even after the false breakout we had last week. What this indicates is that even when there is little trending in the market, there are still movements to play.
At present, momentum has dissipated from the market, and traders are now starting to look for some direction. When it comes to trading direction, a shift lower seems more likely on the surface of things; after all you never go against the trend.
In the event of a breakout (which I deem to be highly unlikely, but still possible) markets will look for confirmation before trying to push higher. Candles with large wicks and strong pull backs are likely and volatility will certainly be strong in the market. I would look for at least two bullish candles before changing my view away from bearish in this market. Even then I would still be questioning if there was room for some bullish momentum in the silver market, or if this was just a bump from fundamental data, or silver trying to follow gold on the charts.
Either way you look at it, silver is set for a move and markets will be watching as a result, albeit with baited breath as there is plenty of opportunity for this precious metal, with a lot less of the crazy moves of gold.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.