Silver - breakout and retest after accumulation phase?
Looking at the price of silver futures contracts we may spot a significant pullback after a strong rally. However, it is worth mentioning what happened just before the upward movement.
The price of silver consolidated since 2016 within a range of 21,30 - 13,71. This period may be recognized as a potential accumulation phase of the market which lasts about three years. It has been quite a long time. What is more, the confirmation of potential accumulation was a sharp decline in March where the price of silver has reached the lowest level since 2009.
After that, the price has surged with huge volume showing the strength of the bulls. Current corrective movement may be typical for the whole structure known from the Wyckoff theory. If the support is defended the main trend could start soon a strong upward movement similar to the one observed in 2010 and 2011.
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Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The price of silver consolidated since 2016 within a range of 21,30 - 13,71. This period may be recognized as a potential accumulation phase of the market which lasts about three years. It has been quite a long time. What is more, the confirmation of potential accumulation was a sharp decline in March where the price of silver has reached the lowest level since 2009.
After that, the price has surged with huge volume showing the strength of the bulls. Current corrective movement may be typical for the whole structure known from the Wyckoff theory. If the support is defended the main trend could start soon a strong upward movement similar to the one observed in 2010 and 2011.
________
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.