Selling Silver at the 200 SMA
Silver has retraced higher, but the retrace might be over soon
Safe havens have been extremely bullish this year, as the worsening sentiment due to the coronavirus has kept them supported. GOLD climbed above $2,000 while SILVER got pretty close to $30 n the first week of August, but then reversed down as the USD gained some strength.
The support levels were broken without much resistance, but the price started retracing higher in the last week of September. The lows have been getting higher and moving averages have turned into support on the H1 chart, but highs have stagnated since September 30.
This shows that buyers are getting exhausted and the retrace up might be coming to an end soon. The 200 SMA (grey) is also providing resistance on this time-frame, so we decided to take a shot and opened a sell forex signal, after a small upside-down hammer candlestick, which is a bearish reversing signal. Now let’s see if the reversal will follow.
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