Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Hangs Tough But Faces an Important Close
April 23, 2021 - (Gold Market Wire) - In the world of trading, there are very few free rides. That's what makes it such a difficult task to undertake. Today's Silver market is a case in point. The moving averages are holding, but Silver needs to get above the downtrend to convince the market that it means business.
The question is right in front of us, on the chart. Was that a reversal on Wednesday and Thursday? Well, we certainly aren't following through. That's an area for concern. We've gotten over the moving averages and the trend line is holding. Thats the positive angle. So now, we have something of a showdown brewing. The close today is going to be an important one.
The cautious trader can relinquish another 1/3 of the 2/3 remaining of the original length, because we're trading near the highs for the day. If we get a strong close, the length can be re-established, or, perhaps, wait for Monday. 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. All of our key indicators (i.e. - 50 and 100 day m.a. and trend line) are aligned, so that should make the job a little bit easier...but the metals market loves to make sure that everyone who has struggled for months, weeks and years has completely capitulated - before the real rally begins (without them, of course). We've taken nearly a dollar out of the market from our initial length, and that should't be sneezed at. But we have to admit, we expected to see a better follow through. That is why the close today is so critical. Wall of worry being climbed? Or momentum fading? (To be or not to be?)
Lastly we have to note that our star performing stock market is struggling as of late. If we get a serious down-draft, the Precious Metals are going to be hit, so if you'd feel more comfortable with money in pocket - its a good time to lighten up the length. Each must weigh their own appetite and tolerance for risk.
On to the close... and a close eye on the equities. That is the focus for the end of this week.