Is Silver Ready To Fall Again?
Guillaume Touzet | Oct 18, 2017 02:26PM ET
In our last article at the end of September 2017, we accurately forecasted a rebound in Silver. Since then, Silver has gain more than 6,5 % in a matter of few days.
But for the past two days, Silver has lost almost 50 cents. So, many investors are left wondering if this is only a short term retracement or a new downtrend is about to form.
Well, as usual we will try find some answers with our proprietary egoldfx meter.
Here is a daily chart:
Point 1. The egoldfx strength line (grey line)) reached the 70 bounce level which indicates that a downtrend is coming.
Point 2. The uptrend line (a) was broken with a close slightly below it.
Point 3. The low of the candle that broke the uptrend line (b) was broken the very next day.
All of this is confirming that a new downtrend is in effect.
For how long?
Well, Point 4 is showing that the egoldfx Silver strength line is bouncing above the 30 bounce level which is telling us that this downward move might not last too long and could only be a strong retracement and not an actual new downtrend.
We will need to wait one more day to see at which level the Silver strength line (grey line) will close. If tomorrow evening it still goes up than this downward move could be erased and Silver might shine again. But if it goes back below the 30 bounce level, than Silver is showing a lot of weakness and this strong retracement could turn in an actual downtrend.
Until then
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