Is the Retrace Higher Over for Silver?
Silver has stalled at the 50 daily SMA, after surging higher earlier this week
Gold and SILVER have been bearish since the second week of August. The trend was extremely bullish in safe havens from March until early August, due to the economic meltdown and the uncertainty that has captured the financial markets this year.
But, the trend shifted in the second week of August and GOLD and silver have been quite bearish since then, even though the economic situation remains really uncertain, and the new coronavirus restrictions are bound to send developed economies into recession again.
Nonetheless, safe havens have been bearish since August, and silver fell below $ 22 on Monday. But we saw a reversal that day, as the USD turned even more bearish. The price formed a hammer candlestick, which is a bullish signal. On Tuesday we saw a surge in safe havens, and silver climbed to $ 24.30. But the climb stopped right at the 50 SMA (yellow) which has provided resistance again.
Silver formed a doji candlestick yesterday, which is a bearish reversing signal. The stochastic indicator has become overbought on the daily chart now, which indicates that the bullish run of this week might be over. But the USD is still quite weak, which makes going against silver sort of dangerous. But, if buyers don’t push higher in the next few hours, we might as well go short on silver.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals