Silver is getting destroyed
|Recent three weeks are one of the worst in the history of Silver. For the last 13 trading days, the price is sharply falling down, without any correction whatsoever. Surroundings are very negative. World stocks are hitting all time highs and are showing constant pressure, endurance and durability. Capital is flowing away from the save heavens and is located into more risky assets like EM currencies or stocks. The buy signal that was present in the first half of April is gone entirely.
Currently, after breaking the line (red) connecting the bottom of the head and the right shoulder (at the end of April), the sell signal is active. In addition to that, we came below the long-term down trendline (blue) and broke another important mid-term support (green). As we can see, only ashes are left now and there are not many positives that we could find here. The only one is more from the common sense than from the hard data or the deep analysis – after such a strong drop, the bullish correction (take profit action) would be more than welcomed. Yes, it would be good to see that but unfortunately we do not have any signs that this may start anytime soon.
Sentiment is bearish and the sell signal is on but with the current levels I would be afraid to enter the market right now. Smart money do it on important S/R levels so what I would prefer to see is a small pullback to the resistance and then a bearish pattern, which would open an opportunity for a new short.
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