Technical analyst Clive Maund reviews current trends in the silver market to explain where he thinks it is heading.
Silver has performed very well in recent weeks, moving back towards the “round number” resistance at $30, but that's where it “decided to call it a day” on Friday with a big silver candle. ugly inversion forming on a large volume – a “tombstone doji”. Silver's strong rally this month led to its RSI indicator being supercritically overbought for most of this month and reaching its second overbought extreme on its MACD indicator in the last ten years.
On its 3-month chart below, we can also see that its rise this month has brought it to the top of the indicated uptrend channel, a good point to reverse lower with the bearish candle that appeared on Friday , strongly suggesting that this is what he will do.
As shown in update on the parallel gold market, the fear factor associated this month with an imminent attack by Iran on Israel – which is currently happening – appears to have been exaggerated, because, at the time of writing, it appears that the Iran launches fireworks to save face. missiles on Israel, most of which are shot down. So if this attack turns out to be a nothing-burger, markets will breathe a sigh of relief next week – and gold and silver will likely react as the charts suggest.
As with gold stocks, the moment seems opportune to take some profits on silver stocks with a view to repurchasing the shares sold at a better price a little later or taking the opportunity to rebalance your portfolio to include the strongest stocks.
We are only talking about a correction here: the powerful bull market in the PM sector is expected to reassert itself soon and drive prices much higher.
How might money react in the short to medium term?
It likely won't go lower than around $26.50 before moving up again.
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Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him at the time of writing. Mr. Maund's opinions are his own and do not constitute a recommendation or offer to buy or sell any security. Because trading and investing in any financial market may involve significant risk of loss, Mr. Maund recommends that you consult a qualified investment advisor, licensed by the appropriate regulatory bodies in your jurisdiction, and make your own due diligence and your own research when making any kind of transactions. of a transaction with financial consequences. Although qualified and experienced securities analyst, Clive Maund is not a registered securities advisor. Therefore, Mr. Maund's opinions on the market and stocks should not be construed solely as a recommendation or solicitation to buy and sell securities.