Silver markets rallied significantly during the trading session on Thursday, reaching towards the 50 day EMA. That of course is a technically important moving average, and therefore it’s likely that the fact that we pulled back from there is something that should be paid attention to. That candlestick looks horrific, as it is a shooting star and it looks as if the fact that we could not hang on to gains tells you just how bearish things are starting to become for silver. That being said, part of the thing that not this right back down was the Tweet from Donald Trump saying that the US was getting close to “a very big deal” with China. That being said, the market has seen this movie before, and therefore a lot of the selling was probably due to algorithms.
SILVER Video 12.12.19
All things being equal we are stuck between the 50 day EMA and the 200 day EMA, and there hasn’t been much change at this point because of this, it’s likely that we will continue to see a lot of choppy behavior. If we break down below the 200 day EMA, painted in blue and the chart, then the market breaks down significantly. Alternately, if we can break above the highs from the trading session on Thursday, it’s likely that we go looking towards the previous uptrend line. At this point, the market looks very susceptible to the latest noise, so therefore a longer-term traders all but impossible. That being said, we have broken through that trend line and it looks very likely to continue to cause issues. At this point, it comes down to the US/China trade situation which of course is all over the place.
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This article was originally posted on FX Empire
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