Silver Price Makes It Nine in a Row, Turning Lower off July Trend-line
- Silver price rise nine consecutive days
- July trend-line stands in the way
- Trading scenario outlined
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The other day when we looked at precious metals we made note of both gold and silver trading at resistance while the US dollar was at important support. The confluence between markets put us in the neutral to bearish camp regarding precious metals with a bounce in DXY looking like a probable scenario. Since then, the bounce has so far played out as anticipated while gold and silver hang out just beneath eyed resistance levels.
Silver is holding up better than gold, and after nine consecutive up-days it is looking to take a breather from around the trend-line running down off the July spike-high. On a pullback silver could touch off on a trend-line rising up from the month low, but it’s not the most convincing trend-line yet given its lack of inflection points.
From a trading perspective, we lean towards the bearish side in the very near-term with the extended run losing steam at important trend resistance, but price action as of yet hasn’t given a real strong indication that momentum lower will gain traction. Silver may only correct to a minor degree and then make another attempt at breaking the July trend-line. If this plays out then we will be able to gather more information upon a retest as to what the next move will most likely be.
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.