The size of the candle is rather drastic, and it does suggest that perhaps there may be a little bit ahead of the market as far as selling is concerned. That being said, turning things back around is probably what we will end up doing. I need to see some type of support candlestick in order to get long, perhaps sending the market back above the $25 level.
Keep in mind that the area that the market pullback from is significant resistance, so it’s not a huge surprise to see this selling pressure. However, this is a market that I think given enough time we will probably see a lot of noisy behavior, and therefore I think this pullback will attract both selling pressure and buying pressure. I suspect the next week or 2 is going to be a very noisy affair, and therefore I think you got a situation where market participants will continue to be very cautious, and therefore I would expect a lot of choppy behavior. That being said, I also recognize that silver has been used for wealth preservation as of late, and that may very well continue to be the case going forward. Caution is the better part of valor, and therefore I would be slow and deliberate as far as jumping into the market.
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