Yesterday’s trade in Silver saw a key candlestick pattern that generally indicates a strong change in the sentiment. The Bullish Engulfing Pattern More is now seen on the daily chart. This can indicate a rally from the previous Bearish price action.
Silver has seen a gradual sell-off since mid-May, with price falling from over 90.00, to the current price in the mid 60s.
The Bullish Engulfing Pattern More that we saw yesterday is one to watch out for for another reason also. The green candle is considered a Marabuzo, which leaves a level at 50% retracement. This level is 65.507.
If price can stay above this level today, this gives a chance for the Bulls to get busy and confirm that we have bottomed out. It still has a lot to do before we can consider the market Bullish. Looking at upside targets of 70.90 which is a Single Print Vacuum and 71.90 which is a Marabuzo line from the 5th of June.
It is important to note that the 200-Day SMA is sitting at 67.625 so we are looking for a retest of that level also. As we say, plenty to do before we can look at a change in sentiment of the market. But the best place to keep a track of these levels, is the Futurestechs Report!
Jamie Lambert
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Clive Lambert FSTA – FuturesTechs
A 10-time Technical Analysis award winner, Clive Lambert FSTA has spent over 25 years advising trading desks on the Metals markets. Covering LME & Precious Metals (Gold, Silver, Platinum & Palladium), his reports are considered the industry benchmark, blending Market Profile and Candlestick Analysis to provide institutional-grade clarity for professional hedgers and traders.
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