April 26, 2021 - (Gold Market Wire) - Exactly what we were concerned about on Friday, namely waning momentum, transpired into the close, and now, early Monday, we can see the results - concerning downside pressure. The downtrend was not bettered, the 50-day moving average held, completely unconvincingly, and now, early in the European a.m. both the 50 and 100-day moving averages have been exceeded on the downside.

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On Friday, we noted, " Silver needs to get above the downtrend to convince the market that it means business." Well, we failed. Just a few sessions ago we were looking at a bull that had re=established his footing and was ready to turn. That whole scenario has changed. The conservative trader took our advice to book out the second 1/3 of the trading position...leaving just one third left. Money in pocket is always a good idea when the pressure looks like its mounting... and we are following through right now by taking profit of the last third and hitting the sidelines. We noted on Friday "Those with stronger hands can hang in, but should be aware to the indicators that say we're running our of steam in the short term."

For clarity we will zoom out our chart, to show its full formation:

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There is no real single driver behind the Metals shying away from the rally that it had in hand, but easing tensions in Ukraine, from the Russian troop pull-back at the border, has certainly helped. Right now, the markets, and by that we mean all of the markets, are beset by uncertainty... that will help the Metals over time, but right now, a nervous market, from equities to Bitcoin and a lot use is keeping a lot of people out of the game altogether. It is not an unfounded fear.