NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

All Signs Suggest More Downside Price Action For Silver

Published 08/10/2018, 08:19 AM
XAG/USD
-
SI
-

The Gold Rush started in Idaho Springs Colorado, 13 miles down the road from where we have our home base for our mountain vacation in Georgetown.

Georgetown, along with the next town of Silver Plume were a big part of that mining craze. Now designated the Georgetown-Silver Plume Historic District, the towns had a combined population of over 4000 people in 1880. Now they are home too just 1200. Back then the area was a silver mining camp and there was a railroad loop between them.

But with that it seems like a good time to check in on Silver prices. The chart below shows the price of the Silver ETF over the last 15 months. From an April 2017 high it has made a series of lower highs, with the last one in June this year. It has also found support roughly at the same spot with the exception of two periods where it overshot in July and December last year. That created a rough descending triangle.

The price broke down below support again in June then quickly came back to retest the breakdown level. It failed there this time and reversed lower into July. By the middle of the month it was consolidating, moving sideways, but well short of the target from the breakdown to 12.75. Momentum is mixed with the RSI stalled and moving sideways at the mid line and then MACD slowly diverging to the upside but still negative. The Bollinger Bands also continue to point lower. All signs suggest more downside price action for Silver. I guess if we find some we should sell it quickly.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Original post

Latest comments

Loading next article…
Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.