Silver bears taking the metal lower

silver daily chartSilver and gold tend to be close bedfellows and whilst the two are moving in similar directions, the daily chart for silver is rather different than that for gold, and in some ways suggests stronger bearish momentum to follow for the industrial metal.

What is interesting here is the price action of January, and whilst gold continued to follow through from the late 2017 rally, silver failed to follow suit, and moved into an extended congestion phase for the month of January, with volume building between the $16.70 per ounce level to the downside and $17.60 per ounce to the upside, with the volume point of control now firmly established at $17.15 per ounce. This is denoted with the yellow dotted line, and as such is adding considerable downwards pressure to the metal. In addition the floor of potential support in the $16.70 per ounce region was breached early in the month, with last week’s price action adding further to this bearish tone. In addition, the trend monitor has also transitionerd from bright blue to bright red, confirming this shift in sentiment, and Friday’s wide spread down candle supported with good volume adding its own weight.

Volumes on the VPOC remain light below, and as such present little in the way of potential support, nor indeed is there much price support, and with the recovery in the US dollar also adding further downwards pressure, a move towards the $15 per ounce region now looks likely in the short term.

By Anna Coulling

Chart by NinjaTrader

About Anna 1064 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

1 Comment on Silver bears taking the metal lower

  1. Anna the bears are the banks everythink is rigged, and the deep state is the government run by the bis, the same has nato all run by Rothschild, when he is ready he will crash the market, and then we will have a war on our hands?

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