Silver seasonally falls around this time of the year which could offer short opportunities.
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The price of Silver could be about to turn as seasonally the commodity usually falls. This combined with the recent FOMC statement to hike rates and control inflation has but the brakes on the commodity prices and metals in particular are starting to feel the effects. In addition, the Commitment of Trader reports show that the commercials are increasing their short positions and are at the highest amount of short contracts held in the past 6 months. This can often lead to the market reversing in the short term.
The weekly chart highlights the market has risen and found resistance at a major supply zone. The price has rejected this zone with price closing back below. The 4hr time frame shows that the price has formed a common forex trading pattern in the head and shoulders pattern. This pattern has been completed and the market looks to be heading back to the neckline for a retest. If the price does find sellers here we can begin to look for short opportunities in line with the seasonal weakness.
Do you trade GBPJPY? you can see our previous analysis here.
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