Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Faces The Channel Limits
April 12. 2021 - (Gold Market Wire) - On Thursday we touched the 100-day moving average, and promptly backed off. It's all been lower price action since. Yes we negated the power downtrend, but the channel itself is proving to be a tractor beam run by the bears at the moment. Until we get out of its clutches we are going nowhere - except maybe lower.
As the chart shows, we have horizontal support at the round number, $25.00, but the main factor is the channel itself - active for two and a half months, minus a few sessions in late February, where the break out failed.
And that is why patience pays. We were actually getting excited last week, but discipline kept us on the sidelines, awaiting confirmation from a down trend break and the 100-day m.a. We never got it - so we never entered the market. Ditto our resistance at $25.80 that we looked for on Friday's close, which didn't happen.
We are now 'celebrating' our weeks on the sidelines. Boring, yes - but better than getting caught in the 'chop' and 'drop' of the past few weeks. Silver has been a true Death by a Thousand Cuts since the second day of February, and the cuts keep on coming. We continue to set out our markers and wait for the market to speak. The news out of Ukraine has done nothing to galvanize Silver and Gold, and so we stay on the sidelines. The market needs to get a move on - or we are going to make the next leg down toward the power boundary of the channel which we are still stuck in.