Silver Could Be Signaling Next Move For Gold
Anna Coulling | Apr 21, 2015 03:47AM ET
Despite the lack of any meaningful news, yesterday was another interesting one for metal traders, with both gold and silver offering excellent intra day trading opportunities, but of the two, it is perhaps silver which is the more interesting.
Whilst gold continued to trade in the congestion range I have outlined in previous posts, silver finally breached the platform of support below in the $16.00 per ounce region, as shown by the solid blue dotted line on the accumulation and distribution indicator. This is an area I previously highlighted as being of key significance to the longer term and now that this level has been breached, maybe we are seeing silver lead gold lower. Moreover, yesterday’s wide spread down candle was accompanied with strong and rising volume moving the metal from $16.275 per ounce to close at $15.89 per ounce and confirming the bearish picture.
Last Friday’s price action had hinted at this weakness. With the trend monitor at the bottom of the chart now transitioned to red, coupled with yesterday’s break through, the longer term outlook for silver appears increasingly bearish. Once again, I will continue to follow this development.
By contrast, gold has continued to maintain its position above its own tipping point at $1190 per ounce, but given the move for silver it may now only be a question of time before gold breaks down and duly follows silver lower. A case of where silver goes, gold will follow?
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.