Silver Crash Resembles Something – GBP Last October
Nothing said there would be any surprises Asia morning. Especially with silver. But if something can go wrong, it will. Spot silver markets suffered a flash crash in Asian morning.
And here is daily chart on pound from October 7, 2016
UK.TRADINGVIEW.COM/X/0Z97LOWS/
What’s more – crashes on both assets happened at the same time, early in Asia, when American traders left home, and Asian ones just starting to wake up. The perfect time for an ideal storm.
We can argue whether it was a fat finger, low liquidity or algotraders, but the key question now – what’s gonna be next?
Having hit a session high of $16.16 an ounce in early trade, silver fell to as low as $14.16 in less than a minute, a decline of over 12%. It came back to 15.81 at the moment of writing. However, we still see some potential to go down.
Given the case with GBP/USD that fell in the same manner and in the same time last year, we can say that silver may easily go back to 15.42 in the nearest week, with further target at 15.00.
And here is daily chart on pound from October 7, 2016
UK.TRADINGVIEW.COM/X/0Z97LOWS/
What’s more – crashes on both assets happened at the same time, early in Asia, when American traders left home, and Asian ones just starting to wake up. The perfect time for an ideal storm.
We can argue whether it was a fat finger, low liquidity or algotraders, but the key question now – what’s gonna be next?
Having hit a session high of $16.16 an ounce in early trade, silver fell to as low as $14.16 in less than a minute, a decline of over 12%. It came back to 15.81 at the moment of writing. However, we still see some potential to go down.
Given the case with GBP/USD that fell in the same manner and in the same time last year, we can say that silver may easily go back to 15.42 in the nearest week, with further target at 15.00.