News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
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US Bans American Banks from Purchasing Russian Sovereign Debt
US Bans American Banks from Purchasing Russian Sovereign Debt
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Silver Market Update

Metals Bounce - And The New Outlook

June 21, 2021 - (Gold Market Wire) - The sell-off on the back of the Dollar rally has abated for the moment, as the Silver market digests nearly $3.00 worth of downside action. Like a lot of downside moves it was swift and brutal, an has shaken a lot of weak length out. It's a decent technical moment to pause, as well, as the horizontal support line shows.

horizontal support

We don't feel that the Dollar rally is over with by a long shot. The Dollar has more upside, and the deflection of the sell-off before the Euro managed new highs, we believe, indicates that the Dollar has room to run. But that is not stopping us from maintaining a bullish outlook on the Metals. Right now, as we sit down on the horizontal support, the market has looked uncomfortable with following through to the downside today - ergo the long tail on today's candlestick (as of this moment, only, of course.) Is that a reversal in the making? It's too early to tell, really. But one thing we are getting excited about is the sell-off in the slow stochastic. We simply pushed things too high on this indicator, and with the dollar surge, and the sell-off, we appear to be clearing out some "old wood" on the indicator. That's a positive.

...just the sell-off on the slow stochastic that we needed.

So far, the formation hasn't bottomed, and that means that we could well get another leg down, but for the trading book, we're establishing small length here, with a view to an inside rally, or maybe even holding on if we taken on another move lower... which is still possible. The fact that it is possible, means we really have to temper the size; so - small is the way right now. For those of the investment orientation, small length here, with increased size at $24.50 is the strategy. For traders, this is a decent risk reward set-up, but one should be able to survive another downdraft without having to cut the position - so that should tell you how to measure the size.

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