• Daily drops below the balance area.
• Plunged below daily EMA50.
• Fueled by pandemic-related global risks.

Silver plunged about -9.82% with other metals as the dollar soars, fueled by rising global risks of new potential pandemic lockdown measures in Europe, according to MarketWatch. The daily perspective dropped out of the balance area which occurred for about a month.

The quarterly perspective found resistance around the prior macro bracket’s low with the monthly periodicity which led the weekly towards the six-week balanced behavior testing the lower extreme on a daily basis. The market broke below the daily EMA50 which is confluent with the bracket low and heading towards the EMA100. Rotational behavior around the EMA50 is probable.

Looking for bullish patterns such as absorption around this lower daily extreme may be the strategy for now. Waiting for the reversal to conclude bearish scenarios might be the next step on this plan.

Silver Daily Chart

(Click on image to enlarge)