Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Tests the Power Uptrend Line
June 2, 2020 - (Gold Market Wire) - Silver's recent gap up is now meeting its first challenge as it pulls back to test the power uptrend line. There is nothing particularly concerning or strange about it. Markets that gap up, like Silver just has, need to retrace and consolidate.
We can see several examples of "gap and retest" that got us here. These are just two, but there are others in the chart as well.
Is it a perfect science? No, of course not. No market is. But the indicator is clear. For those who are strongly bullish, they provide a chance to add length. This European a.m. is one of those chances... for the very bullish crowd. A nice entry point to add length, rather than chasing at the highs.
Trader's should always remember that Silver is as volatile as an irate elephant, by nature. It rants and it jumps and screams and it shouts. You have to be able to hold on for the ride, which is why we always caution, no margin and 'size it right.' Markets never move up in a straight line...(*they often do on the way down) and when they do, the party is almost always coming to an end. This market is doing a nice job of settling in for a further upside move.