After two relatively muted days, Silver has sprung to life as the metal formed a large bearish engulfing bar. However, I would look upon it more as a 2-way bar.
Normally bearish engulfing bars can be strong reversal signals, but following a small inside bar, and with this one closing right in the middle, its less impressive.
Keep in mind, this made an intraday high above the prior days highs but then ended bearish on the day.
So the initial upside breakout was a fake breakout and sellers took over while current longs dumped positions. Interestingly though, after hitting the intraday low, buyers came back in and bought the metal on the cheap, suggesting they were willing to pick some up at lower prices with it closing close to the open, suggesting strong 2-way price action (hence the name)
Best to look at it as more of a large one day range. This gives us the intraday options of playing fades of both sides prior to the FOMC meeting tomorrow where Ben and his beard speak. Expect quiet before and volatility after.
Upcoming Economic Announcements:
|AUD Consumer Inflation Expectation||21.00EST|
|CHF Swiss National Bank Rate Decision||03.30EST|
|USD Initial Jobless Claims||08.30EST|
|USD Producer Price Index (YoY)||08.30EST|
|USD Federal Open Market Committee Rate Decision||12.30EST|