Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Support Levels
February 4, 2020 - (Gold Market Wire) - The heady heights of $30 Silver are well behind us now, and the market is settling down and trying to find support. The chart identifies the horizontal support and trend line(s) that could be considered for establishing length.
If we cast back to late December, we can see how that band of support around $26.19 has developed. It is by no means perfect, but we have had four straight sessions where the touchdown has been within range. That repeated touch tells us that it is an important level. As the trend line closes in (rising) it could take on some added support. The positive picture must also include the fact that the weak length has been properly slaughtered as is almost always the case when the market rips like it just did. A look at the volume map lays out the culling of the amateur crowd, and reveals one of COTs favorite pastimes:
There is nothing like a doubling of volume over a couple of days to alert you to the "parade of the suckers". That is what COT lives for, as its virtually free money. Spike over - we now return to our regularly scheduled broadcast. Volume is right back where it was. Along with the fact that the US Dollar was holding firm and Gold was barely budging there were enough clues to alert the crowd - but the crowd doesn't like to listen. It likes to swing for the fences.
Not a lot changes in the world of trading. With more and more public participation via internet platforms, there will be more and more sheep ready to be shorn, and money delivered to the professionals. So it goes in the world of trading.