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Silver Market Updtae
The Two Forces of Silver's Trends
July 28, 2021 - (Gold Marker Wire) - On an cursory glance, one could almost think that Silver is putting in a bottom here. The long term trend line has been touched and we've had 2 and 1/2 months of negative action. The chart reveals the two forces at work. 1) The long term trend line that we've just touched, and 2) The overhead power downtrend, whose momentum has wrecked havoc on the bulls, especially over the past month.
If we zoom out we can see the distance the main trend line has, historically.
And so, there we have it. Reasonable, we should be establishing length here, if only it weren't for the picture that the equities paint. But if we consider the series of earthquakes emanating out of China, and how they have yet to have a serious impact on western stock markets, we might have to think that the chance of a US equity sell-off may not be as high as we assumed. The market sure looks 'top-py', to be sure. Moreover, the US Dollar doesn't look like it is going anywhere but up. And yet, the chart tells us we should be adding length. A conundrum if there ever was one.
The logical move would be to wait and see if the uptrend holds and the power downtrend gets cleared. The moving averages are telling us to anticipate, and we shouldn't do that. So we take a patient stance for the moment. But if we continue in this vein and Gold continues to cling to $1800, as it has. We are a developing some reasons to be long again.
...but not just yet.