Hello commodity peeps! From my last analysis on Silver, I mentioned that there was a head and shoulders pattern forming and the silver price could fall upon the said pattern’s breakdown. A few days later, it broke down and fell. From then on, silver continued to drop from the said pattern and could still do so. However, profit taking actions on short positions at the 26.50 support could occur at the interim. Such then could lead into a temporary rebound in prices. but if it further breaks below that area, its next support could be 25.00. Anyway, the immediate downtrend which I marked in the chart above will nonetheless work as a technical hurdle to prevent any extension in its rallies. Given this breakdown and the apparent swift in trend, I’d say that the bias now is to the downside my folks. It looks like I’ll be shorting this one on strength. But that’s just me.
By the way, here’s my post right when silver broke down from its uptrend and here’s the other post when I mentioned the head and shoulders pattern forming.
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