Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Is Silver Indicating a New Channel?
May 5, 2021 - (Gold Market Wire) - Much like Gold, Silver is stalling out at horizontal resistance. That's the short-term, bad news. But of interesting technical note is the emerging potential for a new channel which reveals Silver's room to rally. If we manage to work inside the parameters, we may have a map of Silver's next upside.
At the risk of being over optimistic, we think that this has a decent chance of coming to fruition - and that means establishing length, which will be doing - in small size. Of course, we still have the stubborn horizontal resistance - but if we can clear that it is worth us starting the trading book up (properly) on a solid long note.
Right now the uptrend and the horizontal are converging - making for a showdown of sorts. Our big opening day of the month had to back and fill, and now we have. We still have the slightly insane stock market to deal with, and the chances for a big sell off are always there. But the impact seems to be abating. NASDAQ is tumbling while the DOW rages on, so it is to the DOW that we will keep our attentions. The plan is length in Silver, with a sharp eye on the DOW to see if we need to cut in the event of a dramatic sell-off. That can mean DOW-related Silver stops, or it could mean a trailing stop in Silver, to protect against a sudden drop down the 'elevator shaft'.
Small size to open, adding length if the horizontal gets bettered.