Silver Forms Daily / 4hr Pin Bar | Reversal Looming? Aug 28th

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Spot Silver – Forms Pin Bar Rejection
After and impressive $6 bull run, spot silver has formed a daily and 4hr pin bar rejection off the $25 big figure. A lot of traders were asking me if this was a reversal setup to go short, or time to wait for a pullback to go long. My thoughts are the current bull run is weakening just a bit, albeit with some mild profit taking for sure.

Looking at the 4hr chart below, you can see the two boxes which represent the two bull legs in this $6 climb. The first box, you can see it had minor pauses (via the circles) which were small 1-2 bar rests in the upmove. You’ll also notice the main pullback/consolidation was rather timid (A). This run also went about 54 candles before returning back to the 20ema.

Contrast this with the second box which only ran for 21 candles before pulling back to the 20ema. That + the consolidation at B showed a little more push back.

silver pin bar 4hr chart price action pullback setup 2ndskiesforex

Now it should be noted most of the day’s losses were all in the span of 25 minutes, prior to the open market calls for the NY Stock session (vis-a-vis ‘banging the open’ 5m chart below).

silver banging the open price action 2ndskiesforex

Hence the move looks dubious and likely coordinated by those not wanting the price of Gold and Silver to go higher – so take this with a grain of salt as no follow up sellers have come in to make new lows. But it cannot be ignored and some nervous longs may take some profits, thus sending it a bit lower.

But the uptrend still looks quite intact, and with the Syria war drums beating loudly, PM’s should do well in this environment. So I’ll look for pullbacks towards 23.21 area and watch for price action signals there to trade with the trend. Upside targets are now 26.45 and 27.99. Only a daily close below 22.00 negates my short/medium term bullish bias.

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