A lot of people are presumably waiting for silver to get back down to re-test the broken breakout area around $19-$20, before loading longs again, claims Fawad Razaqzada of Trading Candles.
Have a look at this silver monthly chart below:
If silver gets there, it would be a bearish sign IMO and I would only expect a modest bounce there.
Indeed, in strong trends, you want to see shallow retracements instead.
So, what I am looking for is this: for silver to go back above the low of August circa $23.40. Doing so would be trapping the breakout sellers.
IF silver goes back above that level, then looking for new longs would make sense on the lower time frames.
To learn more about Fawad Razaqzada visit TradingCandles.com.
