IMPORTANT DAY FOR SILVER: Price Action Today Will Set The Short-Term Trend
If this technical indicator is positive, silver will likely continue higher on Thursday. However, if it turns out to be a negative indicator...
by Steve St Angelo of SRSrocco Report
By the close of trading today, it will set the short-term trend for the silver price. If this technical indicator is positive, silver will likely continue higher tomorrow. However, if it turns out to be a negative indicator by the end of the day, then it will point to a reversal, correction, and consolidation over the next days-week.
While many precious metals investors don't follow or care about technical analysis, I can assure you that the professionals are keeping a close eye on the trading action. And, right now, the price of silver is being determined by the paper traders, not physical buying. Although, there may be some fundamental supply shortages that may be part of the reason we are seeing a stronger move in the silver price currently.
If we look at the Investing.com chart, which uses the Chicago Mercantile Exchange (CME) futures prices, different than Kitco.com quotes based on the London Metals Exchange (LME), we can see that the currently DAILY CANDLESTICK is continuously changing, depending on the price action. By the end of trading today, the candlestick may show a BULLISH or BEARISH technical indicator:
So, for the silver price trend to continue higher, the daily candlestick would need to look more like the GREEN ONE shown above with the base of at the TOP than the RED ONE with the base at the bottom. The GREEN candlestick indicates that the BULLS won control of the trading that day, and the RED candlestick reveals that the BEARS won the day.
However, even if the Daily candlestick does end up looking more like the GREEN one shown above, there is no guarantee that the price action will continue higher, but the CHANCES are much higher than if it ends up looking like the RED candlestick.
Now, if it ends up looking exactly like the present candlestick, then it's a 50-50 chance the silver price could go either way. But, with the huge run-up in the silver price, it may be more likely that correction and consolidation occur for the silver price to continue higher over the mid to longer-term.
IMPORTANT POINT: I am just explaining what professional traders are looking at. This is only describing the short-term paper price move in silver, not the longer-term excellent fundamental reasons why silver will be one of the best assets to own and to protect wealth in the future. So, with all the silver investors now watching the price action, they should understand that... IF THEY ARE GOING TO DO THAT, then they should at least know what these candlestick and technical indicators are showing.
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