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Re: Trades: silver suppot broken?/Andrew *PIC*
In Response To: Trades: silver suppot broken? ()

Here is a Silver chart. Silver had its blow off top in late April along with the stock market highs and after a major selloff and then a weaker rally in Aug/Sept sold off hard and hasn't recovered. Typically when a commodity does this it takes a very long time before it can muster that kind of strength again as there is so many Silver holders trapped at higher prices and would love to unload on rallies. And if you look at a Silver to Gold ratio chart you'll see this weakness in Silver for some time now. Silver tracks Copper as it is used as an industrial metal about as much as a precious metal. So if you have a weak economy world wide, Silver tends to underperform. When precious metals are in strong uptrends Silver will outperform Gold so a ratio chart of the two does give you a heads up ahead of time on rallies. This Silver chart is weak. Price is trying to hold above 31 which is the Nov lows support. You could call it a Head and Shoulder pattern but the neckline is vague and questionable. Look at the price action on the left side of it. And strong support is at 26.50. I'd rather pass on the H&S pattern and 'if' price sells off look to get long at 26.50 support. I have put on the 150ema that price was bouncing off of along with the 200ema which I normally use on most charts. Note now since the breakdown and weak price action price is using the 200ema as resistance. Bottom line: Not a good solid pattern to trade off of regardless. The major selloff has been seen and the price action since while bearish doesn't look like it's worth trading here unless one is very nimble. Just a lot of choppy price action overall. I'm sure it could be traded with an intraday chart like most markets regardless but I wouldn't bother with it myself with the present pattern.

Messages In This Thread

Trades: silver suppot broken?
Re: Trades: silver suppot broken?
Re: Trades: silver suppot broken?/Andrew *PIC*