Silver Stands Tall as the Fed Draws Nigh
Silver had some fireworks in July (biggest monthly gain since at least 2006). It had a brief crash on August 11, but quickly rebounded and has formed an increasingly tight range since.
This kind of price action is potentially bullish because silver has only advanced for a few months. That means there are fewer investors with long-term winning positions, and therefore less potential for major profit taking.
During the consolidation, Bollinger Band Width % has contracted all the way back to 7 percent, its lowest since July 7. (When XAGUSD was coiling for the last move.)
The 30-day simple moving average (SMA) has also caught up with price. This was a useful indicator two months ago before the breakout occurred.
Finally, there’s a potential catalyst as early as tomorrow when the Federal Reserve is expected to repeat its pledge to keep interest rates lower for longer. That’s usually a positive for precious metals like silver (and gold).
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
This kind of price action is potentially bullish because silver has only advanced for a few months. That means there are fewer investors with long-term winning positions, and therefore less potential for major profit taking.
During the consolidation, Bollinger Band Width % has contracted all the way back to 7 percent, its lowest since July 7. (When XAGUSD was coiling for the last move.)
The 30-day simple moving average (SMA) has also caught up with price. This was a useful indicator two months ago before the breakout occurred.
Finally, there’s a potential catalyst as early as tomorrow when the Federal Reserve is expected to repeat its pledge to keep interest rates lower for longer. That’s usually a positive for precious metals like silver (and gold).
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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