Silver Market Flirting With The Bears

New York (Jan 19)  The daily March silver chart is flashing caution because of the sliding 200 DMA and the close proximity of the futures prices. We are seeing Stochastics correct from over bought territory and the MACD starting to roll over. The average true range is consolidating at 20 cents leaving silver to face a larger that anticipated correction when it comes. ADX which measures the strength of the trend has flattened out and that means the upward trend is weakening. If we see a close below the 200 DMA and the next session gapping lower, this could be your trigger that the correction is starting and washout to $15 could happen while a push back from here up to $16 and close above that resumes the upward trend completely nullifies my hypothesis.

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