Is Something Bigger Going Down With Silver?

Mean reversion on silver has begun, so we consider two scenarios for bears taking two time horizons into consideration.

Charts (3)

 

To be clear, we eventually expect silver to break above $25. Yet near-term momentum has pointed lower as the US dollar finds new buyers. In today’s video takes highlight a key resistance zone for today’s session and highlight a potential pattern which could see a much deeper pullback ahead of a larger, bullish reversal.

As for gold, it did not stay bold above $1800 for very long – a condition we‘d hoped to see ahead of a more direct move towards $1820. Therefore, traders could refer to the lower trendline of the larger bullish channel mentioned in yesterday’s video as its next pivotal level. Also note the bullish hammer low around 1780 on the 4-hour chart. But, if gold moves lower, there’s a decent chance silver could too.

 

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