Silver has been less volatile than GOLD , which has seen some strong moves, since it turned bearish last year. We did see a strong move in Silver as well during the surge back at the end of January, when the Reddit crowd of WallStreetBets which sent GameStop soaring  turned to Silver.

The move wasn’t as big in SILVER , since this is a much larger market than GameStop shares. But they did mage to push the price above $30, flushing out some stops above that big round level. Although the surge ended in early February and Silver has been bearish since then.

Moving Averages Acting as Resistance for Silver

Moving averages such as the 100 SMA (green) and the 200 SMA (purple) were providing support on the way up, but turned into resistance on the way down, confirming the bearish trend of the last two and a half months. The 200 SMA in particular has been doing a great job and we decided to open a sell forex signal up there a while ago.

The stochastic indicator is oversold on the H4 chart and is now turning down, as the price reverses lower, so the retrace seems to be over now. We placed the stop above the 200 SMA, while placing the take profit target above the 50 SMA (yellow) and the 100 SMA (green), just above the $25 level. We are in profit already, so this trade looks to be on the right track.