Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Snaps Back
July 1, 2021 - (Gold Market Wire) - Yesterday was the all important end of month/quarter and half-year, and it took on an interesting note, with the potential for a reversal shaping up, as the recent sell-off abated quickly and sharply. The chart shows the action:
So, a potential reversal and a gap has quickly reversed the market into something of a bullish posture. Although our trend-line failure forced us out of 1/2 of the long position, we have retained the second half, as we thought this could be a potential outcome. Equally, we thought a move to $25.00 could be on the cards. It's a choppy environment, for sure, but as it stands now, we will revert to our uptrend line, while we look back at the end of March formation, to see if we are about to repeat. If we can get a Friday close above the trend line, we will likely seek to re-establish the second half of the long position that we cut on the recent move down. (To those who accuse us of 'tail-chasing' we will have to plead 'guilty', but our decision to cut only half was the amelioration. If you after 'always right' trading heroes, we encourage you to go out and find them - because when you do, you will be listening to BS artists. This is a trading site, and howling about how we're Gold is going to $10,000 an ounce, year after year, is not our game. There are plenty of sites where you can do that. We built core positions near the low for investment purposes, which we noted at the time.)
Now, onto the market. First up, a zoom in for the potential reversal:
The symmetry is pretty clear here - and that's encouraging. What we also see now, was that our 61.8% fib has held. That's another sign for encouragement.
We would be remiss if we did not point out, as we are wont to, that the recovery action in Silver has taken place in the face of a strengthening US Dollar, much to the consternation, we are sure of the "US Dollar is finished!" crowd.
Well, it ain't finished. Still. And neither are the metals. We've identified the Fib importance (the 61.8%, in most commodity markets is a significant one, indeed) and have set out our trend line. We'll await tomorrow's Market on Close (MOC) to see if we add length to our existing position.