Is Silver Ready To Stop Falling?
Guillaume Touzet | Sep 27, 2017 02:21PM ET
After a nice recovery during the summer, silver started to turn south in September with a loss of almost 10% since the daily high on September 8, 2017.
When we say:" is silver ready to stop falling?" of course we are talking about short term moves. Longer term silver direction is still pointing down.
Let see what's the eGOLDfx meter is telling us about what might happen in the next few days.
First let see what has happened.
On September 12, the eGOLDfx sent a warning about a potential short term trend reversal (1). At the same time price close below its uptrend line (A) sending another confirmation that a reversal is about to materialize. Finally, on September 14, price broke the support line (B) confirming a new downtrend.
Since then, silver has been moving downward without much rest on the way down.
Today, the eGOLDfx meter, which sends advance signals about a potential trend reversal is telling us, by reaching the lowest bounce level (<30) (2), that this downward move might come to a stop or at least make a break.
In order to confirm a potential trend reversal we will need to wait for the eGOLDfx silver strength line (Grey) to close below 30 then move back above 30. If this setup materialize in the next few days then we will have a valid warning about a potential strong retracement and even a new uptrend.
Until then
Good trading
eGOLDfx Team
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