The silver made three significant wicks to the bottom resistance area on 24 September 2020, 30 November 2020, and 9 August this year. Each was higher than the previous one.
On the one hand, such an area will have a high concentration of buy-limits, sell-stops, and stop-loss orders. If broken by a sufficient margin, limit order buyers will trigger their stop-loss increasing liquidity for buyers. If I were a bank, I would love to have this level broken and open big longs.
On the other, the sentiment on silver is great and might get even better if fiscal policy-makers create more chaos than they already did. In that case, I wouldn't rely on the price ever reaching there...
Either way, silver is going up with very fleeting momentum. The previous month's low should give us a clear reversal. If the bears wish to change the direction, that's probably the most logical level in the chart to do that. And if they get beat, I expect more buying right above the previous month's low. Hence - it's a decision area.
On the one hand, such an area will have a high concentration of buy-limits, sell-stops, and stop-loss orders. If broken by a sufficient margin, limit order buyers will trigger their stop-loss increasing liquidity for buyers. If I were a bank, I would love to have this level broken and open big longs.
On the other, the sentiment on silver is great and might get even better if fiscal policy-makers create more chaos than they already did. In that case, I wouldn't rely on the price ever reaching there...
Either way, silver is going up with very fleeting momentum. The previous month's low should give us a clear reversal. If the bears wish to change the direction, that's probably the most logical level in the chart to do that. And if they get beat, I expect more buying right above the previous month's low. Hence - it's a decision area.