US Dollar is stealing the spot light in Global markets, Surprise selloff in Commodities and sudden strengthening of dollar caught many traders by surprise. Silver prices are reflecting the current sentiment that is wide-spread in markets. Silver ended the previous week around 16.60 – Lowest weekly closing over the period of 6 months. Price action analysis on 4h chart uncovers some important insights about Silver.
From the Perspective of Market structure, Silver is in sell off since November 11 and the current movements are better explained from that context. Kindly see the chart (listed above) and notice price action during the time. (I cover similar Chart Analysis, Price action Trading strategies in my Trading course) It seems like Silver is in re – distribution process and Smart money players didn’t completed their transactions yet. There are possibilities of Volatile fluctuations before market moves in the real direction of present sentiment. Market is looking to shake out weak hand traders for liquidity. Observe the Price action and ongoing battle of bulls and bears inside the price channel – Sell at higher prices till sentiment remains bearish, in case of any bullish indications or sentiment shifts we need to reconsider our trading plan.
