Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver on the Ropes
June 7, 2021 - (Gold Market Wire) - Silver is on the ropes early Monday, in the European a.m. - but is still fighting to stop a potential downdraft and holding on to our horizontal support of $27.45. While Friday produced a bounce on the lower than expected Non-Farm Payroll number, once the effect had worn off, Monday brought us back down. But, importantly, the horizontal has held - for now. It's a very mixed picture to start the week.
To start, if we look at our horizontal picture, we can see how the $27.45 line developed and how its importance grew over time. This is a critical line for the market, as we can see.
If we move on to more immediate concerns, we can see that our main uptrend has not been recovered, but there is a small inside rally developing. Whether it can hold or not is the big question.
The last piece of note this morning is an addition to the encouraging side of the mixed picture - namely, a stochastic that is being worked off. We have always had some concern for the high stochastic as an impediment to the rally, but now that we are heading down, while price still holds, it gives us some qualified optimism.
We are generally happy that we are long with only small size, as these environments are difficult to manage. The danger of another drop is there, and, of course, it would be in character for Silver to do just that - scaring the daylights out of everyone, before the stochastic bottoms out and the rally begins anew.
Small length and a lot of patience. With a firm eye on the horizontal line.