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Silver – Are the Bulls Losing momentum?

Silver, its better for clarity in Price Action and trading setup

The Market structure in Silver is a Price channel ( in 4h chart). Even though the momentum was strong in the beginning of Feb 2017, soon bulls started feeling the heat of Market volatility. As a result, buying pressure got weak and contrarians (Traders who play counter trend) took it to their advantage. When we look at the lower time frame (1h chart) – It’s easy to spot large spike of selling pressure and Bear traps. These are nothing but an evidence of contrarian sellers offering at highs to weak hand buyers.

From the fundamental viewpoint, it’s a side effect of dollar weakness and positive performance of metals due to safe heaven bets ahead of Trumponomics. Silver jumped from 16.50$ to 18.00$ per ounce primarily due to that. It’s better to wait for further clarity before making any trade decisions. Weak momentum can change the market tone and sentiment. If I was about to take a short trade, I would wait for a clear setup. This is in my Price action trading watch list, I will update if I take any trades.

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