Precious metals have been an interesting trade lately.Tuesday saw silver retest its recent low at 12.43, then it has turned around and rallied the past two days. What are we likely to see tomorrow?Below is a daily chart for the May silver futures.A couple of things jump out at me:
- 1299.3 is a 50% retracement of the past week’s selloff. As this lines up with “round number” resistance at 1300, I would label this significant resistance.
- Today’s close was testing a down trendline off the recent highs.
- 2 period momentum (the bottom panel of the chart) rose to give a short sale signal for tomorrow.
Tying it together, I’d be looking for a short sale opportunity tomorrow, especially it it coincides with a test of 1300. We’ll see what tomorrow brings.
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