Silver Recap

In a previous post we discussed how price on Silver had broken out of a tight range, and a move back higher to the low of this range could have been a chance to get into the new down trend. To read that post see here: Silver Break Out

Silver did move back higher into the old support area of the range and we can see on the chart below, price held as new resistance. This new resistance level found a bunch of sellers and price moved back lower to make a bearish engulfing bar on the daily chart showing just how strong the rejection was.

We can see this pattern repeated again with price breaking lower and then retracing back higher to test the old lows, before breaking out and producing another bearish engulfing bar on the latest daily candle.

This market is now trending down nicely and rotations higher could be looked upon as chances to short with the trend.

SILVER DAILY CHART – 24 OCT 2012