Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Pushes Back against Early Sellers
June 28, 2021 - (Gold Market Wire) - Some early Silver selling out of Asia has been repulsed in the European a.m., as we continue to build a base for what we expect will be a move higher. The chart lays out the action:
We bounced right where we should have if we're not going to break down again, so the early indication is positive. That sell-off and bounce back is just what we need to build strength. If we zoom out we can see our channel in full picture.
Our channel boundary has been re-asserted today, and that leads us to believe our early identification of it is valid. For all the huffing and puffing, Silver is really in a fairly gentle sloping uptrend, and so, when we hit the bottom, we take length and gain advantage from the sharp move lower. Of course, we will have to remain disciplined if our channel bottom gives way, where we will cut half of the position.
Right now we appear to be in the summer doldrums, and that means COT can get up to all sorts of nonsense, that we have to be on guard for. Within this context we note that Friday's late, if small, pull back tells us that the market is fairly thin, and that the 'locals' are in control. They all squared off their books on the close. In such an environment they can get bored and start whipping the market around, so we are not inclined to build any further size. We remain cautiously optimistic for a move up, and alert to the need to be nimble and cut some of the position if we start to lose the channel.