Commodities | Silver | Technical analysis | Our expectations:
The sharp decline in silver prices since Friday was triggered by the new trade rhetoric between the US and China over the introduction of new tariffs. Bloomberg informs Silver’s net long positions have risen to record levels since 2010. This creates expectations to look for long positions, with the technical picture suggesting that we can wait for an even better price.
There is broad consolidation, with the price at the bottom part. The formation resembles a triangle, but the price has passed 70% of the formation without a breakthrough, suggesting that a breakthrough in one of the two possible directions would be short lived, and rather the consolidation will continue.
Opportunity for buy limit orders close to the diagonal support around price 16.35 with stop 15.95.
Alternative Scenario: Closed bar below the last bottom low or below 16.00 may create short-term strong negative moods and a drop in the price of the precious metal.
Chart: Used with permission of Bloomberg Finance L.P.
Trader Nikolay Georgiev