Selling Silver at the 200 SMA

Silver has retraced higher, but the retrace might be over soon

There's a battle going on between buyers and sellers

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.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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