Tuesday’s trading session witnessed a tremendous amount of negative pressure, suggesting that silver prices are about to see a big decline. The fact that the US dollar is killing everything in its path should not come as a major surprise given the dollar’s recent strength. At this point, the silver market trend should be evident, thus I see no need to go long in the near future. Ultimately, I believe this is a situation in which you should want to sell rallies.
Silver markets have been battered for some time, and it now appears that the “H pattern” in the market will continue to bring about a general malaise. The expected trend is a decline to $15, and given the current state of the world, I believe it makes a great deal of sense. I’m not interested in trying to be too clever with this market, so although I’m not going to pursue it all the way down here, I’m also not seeking to purchase any boundaries. We will leap on rallies that exhibit symptoms of hesitancy, as the trend is most plainly bearish.
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The 50 Day Exponential Moving Average is at $21.89 and falling, indicating that dynamic resistance is also beginning to decline. To become bullish, we would need to break over the $22 barrier, which I do not anticipate occurring anytime soon. I am currently ignoring rallies and doing nothing else. I have no interest in attempting to short the market here, despite the fact that it might continue to decline.
