Silver Weekly Price Analysis – Silver Forms a Nasty Candlestick

Silver Markets Weekly Technical Analysis

Silver has been very bullish during the trading week for the most part, only to fall apart and, as I record this, find itself negative for the week. That’s pretty impressive, but quite frankly, this is a market that had been so overdone for so long that it needed some type of break. Sooner or later, gravity comes into play and I think that’s what we’re seeing here.

If we end up forming this candlestick for the week, this is a massive reversal signal. There were signs of this, as a lot of the shops now—the physical bullion shops, are finding nothing but sellers and nobody wants to buy silver at elevated levels.

A Brutal Reversal Signal

I don’t think that silver can’t go higher; I just think it can’t go higher at this rate. Sooner or later, you have to have a little bit of reality and gravity come into the picture, opening up the possibility of the market finding some type of value. Maybe that value is at $100; we just don’t know.

I would pay very close attention to the overall attitude of the market as we close the session on Friday. It could give you a bit of a heads-up, but if we break down from here, the $90 level could be your next support level. I do think there’s quite a bit more silver support near the $80 level, so that’s an area I’d be watching also. Ultimately, I have no interest in shorting, at least not yet, but this is a pretty brutal-looking signal at the moment.

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