by Steve St. Angelo, SRSRocco Report:
While there is a lot of volatility in the silver price during early U.S. trading, where it closes today will likely set the trend for next month. For silver to remain in a bullish trend, it was necessary to hold a key support level during Asian trading last night and in the U.S. markets today. So, far… that is what taking place.
Before I continue with the technical analysis, I want to reiterate that I am only showing what professional traders are looking at. Right now, they control the price movement of the metals. So, if you are watching silver’s price on Kitco.com or other exchanges, then I am just providing analysis to show why it is behaving a certain way, due to technical setups.
Thus, do not complain that technical analysis is useless in a “Rigged” market if you are going to WATCH the silver price movement every day or throughout the day. Because what you are watching are silver price movements based on Traders using technical analysis. If you believe silver is manipulated and should be $50-$100, then stop watching the silver price ticker… LOL.
However, if you are watching the Kitco.com or Investing.com silver price, then where silver closes today will set a very important TREND for next month as this is the last trading day in July.
I posted this on my SRSrocco Report Twitter Feed this morning:
Silver bounced off an important SUPPORT LEVEL and will likely close the last trading day in July on a very positive level.
A close at $24.5-$25+ today, would be ideal.
— SRSrocco Report (@SRSroccoReport) July 31, 2020
This is a 4-hour silver chart from Investing.com. Thus, every candlestick on the chart represents four hours of trading. I can assure you; there is NO COINCIDENCE that silver bounced off that level three times before heading higher. On July 22nd, that level was RESISTANCE, as silver didn’t close above it. However, once silver shot above that level on July 26th, it corrected back down to it THREE DIFFERENT TIMES.
Again, these SUPPORT-RESISTANCE LEVELS mean something… especially, if you are going to watch the Kitco.com silver quotes all day long hoping for higher prices. For silver to bounce off this STRONG SUPPORT level three times is a positive sign. Furthermore, if silver closes at $24.5-$25+, it would be ideal for a continued bullish move into August.
Why? Because it comes down to this one Monthly Candlestick shown in the chart below:
That candlestick highlighted in the black circle becomes more BULLISH or POSITIVE for August if the body closes higher. Right now, the WICK at the top is quite large. Large wicks at the top of candlesticks typically represent a reversal. But, if silver would close at the $24.5-$25+ level, it would mean that the BULLS are more in charge of the trend than the BEARS.