Silver crash over or making a pause?

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Silver is trading near the late 2010 price levels and today is the first day we witness a pause to the selling frenzy that took over Gold and Silver the last two trading sessions.  Why prices have paused at this level? Is the decline over?

silver

Silver has stopped the decline just above the 2008 top and a bit higher than the lower pitchfork support. This could be a level where prices can stage an upward bounce and form an intermediate term bottom. Although it is too early to say that Silver has bottomed, (that entered near these levels) should feel confident as long as prices do not overlap with the 2008 top and as long as they stay within the pitchfork. Short and intermediate term trend remain bearish. This upward bounce can meet with aggressive sellers again near the 25$ level. Breaking above 26-27$ could give bulls a hope that prices are not going to see lower levels than 22$.

Until then, if you want to try to buy, be carefull and always place a stop. Ask those silver that did not place a stop order how they feel. We have to be clear. There is no bullish sign yet nor any bullish formation.  Trend remains down. We only point out those levels we feel are important and could provide a considerable and worth taking risk expecting a  bounce upwards. For more help trading Silver and Gold, don’t hesitate to contact us.

As always, thank you for taking the time to catch up on my thinking.

A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.

The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.

Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.

A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.

The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.

Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.