Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Stages Small Recovery
September 21, 2021 - (Gold Market Wire) - Silver has bounced off the $22.00 level, the important horizontal support line, and staged a modest recovery, along with the European equity markets. So far, global contagion from seemingly imminent default of the Chinese property developer Evergrande, seems contained to those companies who rely on the Chinese property sector for their businesses. That is not really Silver relevant.
All in all, a logical place to bounce. The power downtrend, being nearly vertical, was probably over-done. But downtrends have a way of often exceeding expectations. Our simple stochastic certainly looks like it's turning, which is mildly bullish, but these are heady days, to say the least.
The importance of the line at $22.00, was, indeed recognized by the market. A tear through that level probably meant a significant downdraft. If we continue to build the stochastic inflection we will put some small length on, but we remain wary. Closes under $22.00 - especially on a Friday, will mean we must cut and get flat.
The market never gives away money.