SILVER – in the period from June to November last year, it was quite cheap to reach the nearly three-year minimum level of 13,860 $/oz. It was then that the formation of bullish engulfing (Outside Bar) was formed and silver started to become more expensive. Moving in a channel with a fairly large range on the last day of January this year, the price reached 16.16 $/oz, and the first day of February ended with falls creating a downward pinbar. A good confirmation for further declines would be a maximum on MACD on the Daily chart.
When we look at the H4 chart we can see that the mentioned pinbar from the day chart is a pattern of bearish engulfing where the “mother candle” was formed on the resistance (upper edge) of the channel. This is an important piece of information because PA formations that are formed at important levels are more important than those formed in less significant places.
I am focusing on drops on this metal, where the closest target of supply can be level of demand zone at 15.65