Following on from my piece on Tuesday, Silver looks to have broken to the downside, and given the super narrow state of the Bollinger Bands this suggests that the ensuing move may have legs.
Adding to the conviction, the NZD/USD has traced out a ‘key day reversal’ whilst most other USD based pairs have made strong moves from ‘doji’ type setups.
The market simply now looks to be a ‘buy USD’ market and Silver may be one of the better vehicles to express that view. Certainly with its ‘industrial’ categorisation, Silver may outperform to the downside given the obvious contraction coming in global manufacturing.
Edge Capital Markets Limited, a specialist advisor in Futures – FX – CFD – Options – Shares – Gold – Silver – Commodities