Has silver bottomed?

raising the blue red and white flag
CAC looking to overcome barrier
October 16, 2021
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Follow the money
October 17, 2021
silver markets

silver

I really, really hate the idea of calling bottoms. This might be a bit of a surprise to anyone that follows me at FX Empire of Daily Forex, but calling a bottom is a situation that causes a lot of issues for those of us that are in the public. The reality is that anything can happen at any time, but as analysts, we are paid to suggest what could happen next.

This is the point. No matter what you see on the charts, its just a possibility. It is essentially just predicting the future, based upon the available information at that time. The problem is of course that you don’t always have all of the information. It comes in bits and pieces. Furthermore, I send out analysis that people follow. Sometimes, I send out information that makes people money. However, if I am wrong – they can lose it. This is the biggest problem with talking about reversals. They don’t happen all the time, and unfortunately, a lot of people will jump into these trades with way too much of a position size. In other words, be careful…

However, I cannot ignore the fact that the silver market continues to see the $22 level as a major support level. The area has held quite nicely for ages, and the recent price action suggests that it will continue to, as we have broken above the $23 level. The leapfrogging of that area is the first barrier broken to a reversion of price. Notice that we have had an inverted hammer, hammer, and neutral candle form over the last several weeks on this chart before the rally this past week. In other words, the market looks as if it is picking up strength. The $24 area is of course the next area of interest, and if we continue above there – we continue even higher. On Monday, I will start to look for buying opportunities.

Silver futures weekly chart
Silver futures weekly chart

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