 Good morning and welcome to the chart of the week video with me David Madden. Today's date is Friday the 25th of September 2020 and it's just coming up to 1150 British summer time and this week's chart of the week is silver. We've had a fairly decent sell-off in silver in the last few weeks but the negative move that we've seen in the last few weeks must be put in the context of the phenomenal growth that has had in the last few months. So if you take a look at the wider view we can just see just how far silver has come in the last few years. It's been a very solid downtrend for years and years and years and then between March and August of this year the metal more than doubled in value so it's been a colossal move to the upside and so it's hardly a surprise that we saw a pretty aggressive move negative move in mid-August and more recently given the strength of the US dollar we've seen further losses. The point of this video is to discuss where could we go from here on silver. So it is worth noting the wider trend is to the upside but if you have excessive growth like this it can be difficult to maintain so we could still see losses in the near term. Taking a look at the price action recently we can see the price being pushing aggressively to the downside. If you look here at the MACD indicator the MACD histogram we can see the steady increase in negative momentum so the market's moving to the downside but if you could take a look yesterday's candle here that has the potential to be a hammer formation. Now in order for that to be confirmed you'd want to see a continued upward move in today and tomorrow and so on and so forth. So far on today's candle it hasn't taken out the highs of yesterday but at the same time it's well below it's well off the lows of yesterday so keep an eye on that. It's also worth noting if you apply the Fibonacci retracement from the lows of mid-June to the highs of early August when the seven-year high was hit we can see that the price action between August and yesterday we can see that the 61.8 retracement level acted as support which also coincided with this yellow line here the 100-day moving average. So while we hold above that metric it's likely we could see further gains but if we do have a break below that metric that could take us back down towards the $20 level. $20 is a big number we can also see here that this small bit of consolidation from the price area in early August as the market was moving to the upside. If you are going to be trading silver please keep an eye out for what's going on in the US dollar. Silver is trading dollars so the stronger dollar tends to have a negative impact on silver. Recently enough the US dollar has been acting as a safe haven play so whatever traders are concerned about the health of the of the global economy equity markets are falling they've been buying US dollars recently and with that the dollar has moved upward as we can see here on the US dollar index chart it was only yesterday the US dollar index hit a two-month high so it's no coincidence that we're seeing move to the upside in the US dollar and move to the downside in silver. So if you are trading silver keep an eye on that if we continue to push higher in the dollar and the dollar index takes out yesterday is high and continues to push on you know fresh multi-week highs, fresh multi-month highs that could be the factor which poses downward pressure on the silver market. It is worth noting today at 1330 British summer time we have US data out due to the goods data that could increase in volatility in the dollar and in turn in silver so keep an eye on that. In terms of the price action you know it is in the near term if the dollar pushes higher we could head back down toward this zone here and most recent low and we could head back down towards 20 bucks 20 bucks but let's not let's not forget that the wider trend the upper trend is very much in play here so if we do continue to press on higher from here on the silver market we could be looking at heading back up toward this blue line the fifth day moving average it acted nicely as what resistance and support back in May so the metric has been important in the past it makes it more likely it'll be we have importance. Excuse me in the future that comes into play in around the $25.87 and if you go beyond that we could then be looking at look at the highs of mid September which come into play in around $26 and the $26.70 there they're abouts and if you go beyond that we could then be looking at retesting the highs of early August that's all from this video thanks thank you for listening have a good trading week and good luck