- Silver sits in the middle of the range
- Still watching for either the upper or lower bound to be reached before possibly initiating a trade
- All price action in the middle should be left up to scalpers
The latest commentary, on Wednesday, was titled, “Silver Prices: Buy Low, Sell High, Do Nothing in the Middle”. And…so far, nothing has happened, with silver remaining in the middle of the range.
There are a couple of things going on here: Silver had quite a run-up since December in both price and net long positions amongst large speculators, and, even if it is to head higher, it was due for a period of consolidation. Also, it is summer and the dog-days (August) of the season are here; low volume as market participants squeeze in vacation before the fall months arrive. Without a significant driver, volume and volatility are likely to remain low for the next few weeks.
Moving on to the tech-scape for silver: Smack-dab in the middle of the range. We maintain that it is best to wait for either a rally and reversal off the top-end of the range around the 20.66/76 area, or wait for a decline down to support around 19.20 and reversal for a long. Anything between here and there should only be left to those operating on the intra-day time-frame.
Should silver breakout in either direction, then a retracement and hold of former support or resistance would be required on this end before possibly taking action.
Watch trader positioning in real-time using the DailyFX ‘Speculative Sentiment Index’.
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX.