{"id":19733,"date":"2022-05-18T07:30:21","date_gmt":"2022-05-18T11:30:21","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19733"},"modified":"2022-05-18T07:30:21","modified_gmt":"2022-05-18T11:30:21","slug":"the-other-precious-metal-is-on-the-brink-of-a-bounce","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-other-precious-metal-is-on-the-brink-of-a-bounce\/","title":{"rendered":"The “Other” Precious Metal Is on the Brink of a Bounce"},"content":{"rendered":"

When investors think of precious metals, it’s usually gold that comes to mind.<\/p>\n

That’s why I often refer to silver as the “other” precious metal.<\/p>\n

And while gold is the one grabbing all the headlines, I’m more interested in a potentially explosive move in silver right now…<\/p>\n

Let’s look at the silver futures chart…<\/p>\n

\"Chart\"<\/div>\n

From its March high of $26.16 (red arrow), silver has dropped almost 20% and is currently trading at $21.<\/p>\n

That’s a big move and there hasn’t been much of a bounce along the way.<\/p>\n

But now, silver is trading into significant technical support and the potential for a large bounce is building up.<\/p>\n

There are two indicators on the price chart that suggest silver’s downtrend slide is ending soon.<\/p>\n

First, are the Bollinger Bands<\/a> (blue line). They’re a great tool to identify an overextended market.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The upper and lower bands contain most of a market’s price action, and prices tend to bounce off those outer bands.<\/p>\n

Now, prices are tagging the lower band… setting the stage for a potential reversal.<\/p>\n

The second indicator is the 200-period moving average<\/a> (MA) that’s currently at $20.26.<\/p>\n

It’s possible the market will test this MA. But its proximity to the lower Bollinger Band suggests there’ll be a lot of support for silver immediately below.<\/p>\n

A good initial sign that the bounce has started will be if prices can close back above the lower band.<\/p>\n

Remember, this chart is on a weekly timeframe.<\/p>\n

So, I’ll be waiting until the end of the week to see if silver can close back above that lower Bollinger Band.<\/p>\n

If it doesn’t, then there’s simply no trade to take and I’ll wait to see if we test the 200-period MA lower down.<\/p>\n

Happy trading,<\/p>\n

Imre Gams
Analyst, Market Minute<\/em><\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

Do you think we\u2019ll see a price reversal in silver by the end of this week?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s a potentially explosive setup taking place…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-19733","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19733"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19733\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19733"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19733"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19733"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19733"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}