Silver's advance is checked by a skew in positioning
Chart used with permission from Bloomberg Finance LP, as of 11 February 2019.
In recent days, gold has pushed a near-2% decline back to a 1,303 low, after fetching a minor triangle target at 1,323 with a high of 1,326 traded. This is aligned with our thoughts in 29 January’s FX Tactical.
Similarly on the chart, silver also placed the final leg of a five-legged 1-2-3-4-5 advance from November’s lows around 13.90, before retreating to a 100-period moving average on the four-hourly charts and right on the dot of a 23.6% Fibonacci retracement of 13.90-16.19, at 15.65.
The decline has held and respected the trendline support (in green), for now.
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