Silver has been performing stunningly well on the charts at present and while most traders will be content with their shorts, some are now starting to ask when it might end. Downward trends certainly don’t last forever, especially in markets as fast paced as precious metals.
Admittedly, I’m a little cautious of the downward trend extending much lower on the charts. There is a strong reason for this, as shown below in the monthly chart which I have cobbled together for your eyes.
At present we are in a strong area of liquidity and it’s likely the market will be digesting this and may look for a move higher – I’m not saying right this second but something you should be acutely aware of because trends are not permanent. Looking at this chart you might take a look at 2007-08 and say well its fallen further. No doubting that it has, as silver is used in industrial application and during the global financial crisis industrial users let their stockpiles dwindle as market demand slacked heavily.
Looking at the hourly chart, it’s very clear that at present there is a cup and handle formation on the charts. I’m not a firm believer in a cup and handle pattern, but when something like that appears it’s worth taking note. Silver does love its technical patterns after all as we have seen on the charts. It could possibly by the tipping point that people have been watching for.
Recommended Content
Editors’ Picks
AUD/USD regains the constructive outlook above the 200-day SMA
AUD/USD advanced strongly for the second session in a row, this time extending the recovery to the upper 0.6500s and shifting its focus to the weekly highs in the 0.6580-0.6585 band, an area coincident with the 100-day SMA.
EUR/USD keeps the bullish performance above 1.0700
The continuation of the sell-off in the Greenback in the wake of the FOMC gathering helped EUR/USD extend its bounce off Wednesday’s lows near 1.0650, advancing past the 1.0700 hurdle ahead of the crucial release of US NFP on Friday.
Gold stuck around $2,300 as market players lack directional conviction
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Bitcoin price rises 5% as BlackRock anticipates a new wave of capital inflows into BTC ETFs from investors
Bitcoin (BTC) price slid to the depths of $56,552 on Wednesday as the cryptocurrency market tried to front run the Federal Open Market Committee (FOMC) meeting. The flash crash saw millions in positions get liquidated.
FOMC in the rear-view mirror – NFP eyed
The update from May’s FOMC rate announcement proved more dovish than expected, which naturally weighed on the US dollar (sending the DXY to lows of 105.44) and US yields, as well as, initially at least, underpinning major US equity indices.