by Dr. Jeffrey Lewis, Silver Seek:
Technical analysis of the financial and commodity markets has been used effectively by traders to analyze price movements of commodities and stocks for hundreds of years. Despite being one of the most effective methods for forecasting future price movements, technical analysis can break down and give conflicting signals when certain events occur.
This seems especially true in the silver market, where a number of factors have changed that precious metal’s trading dynamic. Reading silver’s future can be more accurately done by interpreting a combination of factors, which include price action and participant positioning.
Latest Trends in the Silver Market
As previously mentioned, a number of different factors are contributing to price movements in the silver market. To a person unfamiliar with recent developments, these factors might make market moves appear counter intuitive.
For example, large commercial traders are currently positioned for higher prices, while recent downward price momentum has hedge funds and speculators adding to the downside price pressure.