Silver initially spiked following U.S. and Israeli strikes on Iran but quickly reversed, as traders wrongly assumed it was the “end of the world”, and that the previous rush into the market was going to happen again.
Silver
Well, after the announcement over the weekend that the United States had attacked Iran, right along with the Israelis, one would expect precious metals to take off. And while that did happen initially, I'm afraid that a lot of retail traders may have seen massive losses. And that's the problem with trading an announcement like this because you don't really know how this plays out.
It turns out that the situation with the Iranians isn't as World War III like as people had anticipated. And it also turns out that there is still a huge amount of short interest, or I should say short positions that were taken out in this market that have scarred it.
Now we are below $90 again, and that's not a good look. So, I don't know what it will take to send silver to $100. But right now, if a war won't do it, you have to question what will. I think this is a very negative turn of events. It doesn't necessarily mean that the trend is over. But I think this tells you just how beaten down the silver market has been.
Watching the $90 Level Closely
And in fact, it looks like we're going to open at basically the high had a little bit of a push in thin Asian trading. And we've collapsed since then almost 6%. With this, if you are bullish this over, what you want to see is maybe a dip and a bounce. If we can recapture the $90 level, perhaps on an announcement, that would be a very bullish turn of events. But still until that happens, I'm pretty suspicious about this. It looked like it was ready to go and to form a bearish engulfing candlestick like it looks like it wants to, that's not a good look.