This is a request from a follower.
From the chart, we can see that the price action has broke out of the weekly bearish trend line. This is crucial to see the big picture.
Next, the price action is travelling in a upward channel but has now meet with some resistance (at 9.05)
Please compare this chart with the one you are trading with as it can be different. There is a gap at 7.69 to 8.28 awaiting to be filled. Is this also happening in the chart that you are using to live trade as well ? Do not assume they are both the same.
Once you are done here, zoom down to the details on the candles pattern over the last few days. What do you see ? You can see clearly that it has broken out of the channel initially but not strong enough to push to the next higher level. Bears come in to push the price down as witnessed on 5 Aug 20 red candles.
Of importance, the last closing candles tell me the bears have won, temporarily. This is a pin bar which is bearish in nature. Therefore, we can say , the probability of it heading south towards the lower channel is high.
It could fall to the lower channel and rebound OR falls through the channel and
Depending on your strategy, it is not encouraged to short as this stock is on a strong bullish move on multiple time frames. Shorting now is a countertrend strategy and require precise entry and exit and risk/reward does not seems justifiable.
So, if you are buying or accumulating, you want to wait for the price to fall and revisit resistance turn support at 6.95 level or the minimum at 8.00 where the gap is closed and monitor a bullish signal before entering.
Another possible alternative would be the price action starts to hover around 8.34 to 9.81 for a while (ie. breaking out of the channel) before deciding its next move (likely upwards).
One last point to note - if you are already longing silver , then you want to ensure your portfolio is not overly geared towards silver or gold related stocks/ ETFs, etc. A concentrated portfolio is like putting all eggs in one basket. There is nothing wrong with this strategy if you are fully aware what you are doing and have a clear strategy.
The challenge is striking a balance of not overly concentrated or overly diversified.
I hope this analysis is useful for you. All the best in your trading! GBU.
From the chart, we can see that the price action has broke out of the weekly bearish trend line. This is crucial to see the big picture.
Next, the price action is travelling in a upward channel but has now meet with some resistance (at 9.05)
Please compare this chart with the one you are trading with as it can be different. There is a gap at 7.69 to 8.28 awaiting to be filled. Is this also happening in the chart that you are using to live trade as well ? Do not assume they are both the same.
Once you are done here, zoom down to the details on the candles pattern over the last few days. What do you see ? You can see clearly that it has broken out of the channel initially but not strong enough to push to the next higher level. Bears come in to push the price down as witnessed on 5 Aug 20 red candles.
Of importance, the last closing candles tell me the bears have won, temporarily. This is a pin bar which is bearish in nature. Therefore, we can say , the probability of it heading south towards the lower channel is high.
It could fall to the lower channel and rebound OR falls through the channel and
Depending on your strategy, it is not encouraged to short as this stock is on a strong bullish move on multiple time frames. Shorting now is a countertrend strategy and require precise entry and exit and risk/reward does not seems justifiable.
So, if you are buying or accumulating, you want to wait for the price to fall and revisit resistance turn support at 6.95 level or the minimum at 8.00 where the gap is closed and monitor a bullish signal before entering.
Another possible alternative would be the price action starts to hover around 8.34 to 9.81 for a while (ie. breaking out of the channel) before deciding its next move (likely upwards).
One last point to note - if you are already longing silver , then you want to ensure your portfolio is not overly geared towards silver or gold related stocks/ ETFs, etc. A concentrated portfolio is like putting all eggs in one basket. There is nothing wrong with this strategy if you are fully aware what you are doing and have a clear strategy.
The challenge is striking a balance of not overly concentrated or overly diversified.
I hope this analysis is useful for you. All the best in your trading! GBU.