Silver Outlook

Silver Outlook

We’ll open the daily chart XAGUSD from OANDA.

The #Silver market is more bearish than bullish. And here’s why.

1) This is an #SB – sales pressure bar. It formed yesterday, November 5th. But what is important. It was an attempt to rise before SB. On October 31, a price increase began. But look at the volumes. They are exhausted. The weak activity was associated with a shortage of buyers (#ND) above 18.0. Now we know this for sure.

2) These are local lows around 17.50. There was a large concentration of stop losses. The current price has already activated them. The balance of buyers and sellers has changed. Therefore, the rate of decline should decrease.

It seems to me that silver will continue the bearish trend, but at a more measured pace. We have a support zone below about 17.0. It formed on the twentieth of August, when the #NS +#DB pattern appeared on the chart. It already provided support. There are no clear arguments to claim that it will not act as support in the future.

The first target for bears is 17.20.

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