Loading ...Silver Needs a Breather Before Running Higher
Silver has been on a rampage for the past month. The near vertical move of 26 bars remains uncorrected so it is ripe for a pullback. Its unusual for any instument to keep rising relentlessly day after day without a break of some kind. This one is now in a nice bearish configuration so be prepared to trade South for awhile. The 50% pullback line resides at 23.085 while a Fibbo of .618 will give Silver a low price of 22.345. We all love a nice move in metals, but nothing goes straight up forever. Just take it in stride should it drop abruptly and don’t be surprised since a decline would be completely normal here in order to blow off the excess bullishness and getting ready for the next run higher.
Sounds reasonable as you write it. Also HOR.RES while 24-ish provide HOR.SUP. Could all be. What also is a possibility, that the Ag-boat now full of Bulls and all Ag-shorts have exited the trade. As all Ag-bulls are now all grouped, Mr. Market can decide to go the other way.
My GSR tells me that Ag will turn here but I will not yet scare the Ag-lovers just yet. Let me put it differently, GSR is a BREAKPOINT.
Yes thanks Nightgale, I am a reasonable guy. LOL. I trade by time incidentally which is why I count bars. It’s a non conventional method but it does have some redeeeming features in that it helps you keep things in perspective and allows you to plan your trades by rythms that are natural in the market.
Strongly disagree that such a large correction is needed. iMo silver will correct mostly through over the next 2 weeks.
The energy for a break higher was already generated on the drop into march. Respectfully.
Meant to say it will correct mostly through time