Silver markets have gone straight up in the air over the course of the week, showing signs of strength and breaking above the $26 level. By doing so, it was an extraordinarily bullish move but at the end of the day we see that the market has given back quite a bit. I think at this point it is likely that we will continue to see bullish pressure eventually, but some profit-taking is probably going to be what we see initially.
SILVER Video 03.08.20
While we have not formed a complete shooting star, the candlestick is close enough to that to suggest that we are going lower. The $20 level underneath should be the “floor” in the market, so I would be a bit surprised to see this market break through there. If it does, that would of course be a very negative sign, but if we get down there, I am more than willing to take the chance on that position. To be honest though, I do not think we get that low and I think $22 is probably a little bit more likely.
On the other hand, if we break above the top of the candlestick it is likely that we then continue to go higher but only for the short term as it would be a bit of a “blow off top.” Silver has been extraordinarily volatile and bullish as of late, but sooner or later gravity had to come back into play. I will not short this market, but I am more than willing to be patient enough to take advantage of value when it appears.
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This article was originally posted on FX Empire
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