Remember the Silver flash crash?
Nope, me either!
Let’s take a look at the charts to refresh our memory on just what happened:
The daily chart shows the drop through trend line support and instant recovery the clearest.
What’s key for me here, is the fact that it happened at that confluence of support between the daily trend line and horizontal swing low. The endless stops that would have been just below here added to the already illiquid Asian session trading no doubt compounded the drop.
But after zooming into the hourly, you can now see that price has essentially ignored the flash crash drop and reactivated the daily trend line support level.
With Silver known for its ability to maintain trends after higher time frame support/resistance levels hold, it will be interesting to see if we can get an intraday stepping pattern to build a long around down here.
Open a Vantage FX Live account and take advantage of commodities on MT4 and as always…
Best of probabilities to you.
Dane Williams – @VantageFX
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