The Silver market is looking good as of late for bearish traders as it continues to push back down the charts. With the market being somewhat bearish for precious metals in the build up to non-farm payroll day things are looking good if you’re a bear.
But there are still great short term opportunities for traders, the first being the support level at 16.063 which has so for been tested three times, all of which have failed recently to push through showing there is still some bullish support.
So what we expect in the coming hours is a movement higher to the current trend line in play and a rejection of it.
As can be seen on the chart above, I expect pressure to continue on the trend line and then finally break through the 16.063 support level and push down to the 15.605 level finally.
However, if we saw a breakthrough of the trend line that was sustained I would start to look very bullish indeed. I feel that only NFP would have the power to sustain such a move through the trend line, and it would be a very strong move at that which would flip the market on its head and bring uncertainty back to the market and a return of the metal bulls.
Overall silver remains bearish in the short term and over the next 48 hours we should see some technical plays to push it lower. Be careful of NFP and the volatility it brings, and also the opportunities it brings.
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