Silver signals that a corrective pullback might be about to start

Silver posted today an outside spinning top after a relentless 3 month rally higher. What is more important is the area at which we got this bearish reversal candlestick forming, right at the 61.8% Fib of the July 2016 high to the November 2018 low and a S/T spike above it to re-test and fail at the $18.50 horizontal resistance area. If we add to the mix the extreme positioning and sentiment as well as the diverging behaviour of gold (gold reversed on Monday and failed to follow silver to new highs) we have to at least switch our viewpoint from bullish to neutral in expectation of a corrective move lower.

Silver Bearish Reversal

Steve Voulgaridis