Spot silver morning analysis (January 30)

This morning, silver fluctuated in a narrow range of $112-118, and after the overnight plunge, bottom-buying funds entered the market, the decline narrowed but the sentiment was still unstable, and there was a high probability of a shock pullback before the monthly close.

The main reasons for the plunge: The Federal Reserve kept interest rates unchanged on January 29, Powell emphasized that inflation is slow to fall, high interest rates may continue, expectations of interest rate cuts in March have cooled, and the strengthening of the US dollar has suppressed silver prices; Institutions concentrated on taking profits at a historical high of $121, compounded by exchanges raising margins, and leveraged bulls were forced to close their positions, triggering a short squeeze.

Stop falling support: silver has both financial and industrial attributes, the central bank continues to increase its holdings, China's export controls have led to tight global supply, photovoltaic and other industrial demand is strong, and the long-term positive has not changed.

Sentiment and funds: In January, silver ETFs increased their holdings significantly, and futures long positions hit a record high, but the RSI once exceeded 90, which was seriously overbought, and short-term selling pressure was still there.

Short-term shocks digest selling pressure, the general trend is still strong, and this plunge is a short-term wash. Morning risk control to make a little money, in the afternoon or European market out of a clear direction, then consider increasing the position, catching the rebound at the 113-112 level is more secure, the target is to look near the 110-108 range!

The above is only a personal suggestion, for reference only, does not constitute an investment basis, please refer to the layout of Cheng Jingsheng Shipan for details! $BTC ‌#白银