The price action on silver formed a false break Pin Bar reversal on the daily chart. The Pin Bar was against the trend, however this market was due for a pullback after such a large move higher.
When the low of this Pin Bar was taken out, price cruised on lower into the near term support area. This market is in an up-trend and until the market shows us otherwise, we favour the trend continuing.
Price on the daily chart has now formed a bullish rejection candle which is rejecting support. This could see price on silver continue it’s move higher, and if this is the case a test of the recent highs could be on the cards.
SILVER DAILY CHART – 27 SEP 2012
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