Silver remains weighed down

Silver daily chartThe selling which was evident for both gold and silver on the 8th January has had a more profound and longer term impact on the industrial metal, which has struggled to recover ever since and has remained rangebound around the volume point of control at $18 per ounce, and is now an area layered with various levels of support and resistance.

From a bullish perspective, the most important of these is the resistance line immediately above the VPOC (yellow dash line) at $18.05 per ounce and denoted with the red dashed line. This is a level which has been tested repeatedly over the last few weeks and held firm with one exception. Below are several support areas, the strongest of these at $16.60 per ounce.

The key for silver is dependent on the performance of gold, and much like the US indices, it will be a case of one pulling the other higher. In this case, gold pulling silver with it as the bearish sentiment is weighing heavily, and also confirmed by the trend monitor indicator. Note the weakness in the rally of late January with the volume falling away, before the sellers moved in once more.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 2016 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.

» CONTACT ME