Silver Bears Have Technical EdgePosted 02/09/2018 10:23AM CT |
March silver is trading 16.220, down about 12 cents on the day. My last article, I discussed the potential of silver bottoming. It looks like with the recent US dollar correction to the upside; metals are in defensive mode. Technical damage done to the silver chart puts silver in an oversold area on the daily bases. Seasonal tendencies have silver favorable to the upside. Strenght in the US dollar will dictate if silver continues to see or not. My analysis shows that per close bases, if silver can’t manage to hold above 16.00 as the March contract winds down, more downside is to be expected. As I have written before “bargain hunters can ease into the long side from these levels (16.00) with a tight risk. As I have stated before those, who want to be long silver will be better served if they come in on strength rather than weakness. That said, a close above 16.50 should provide that near-term lows are possibly in. I expect to see strength in silver in coming days.”
Bulls should be encouraged that silver is not melting down as equities are, but longs should still consider coming on a strength. A long-term chart shows silver is consolidating in a tight 18.00 to 15.00 dollar range. Trade outside of these ranges will probably cause silver to make a substantial move.
Silver Mar ’18 Daily Chart