Silver [SI1!] Weekly Timeframe: Need to break 200 Week MA
Hi all,
Silver has been on a nice run since the double bottom bounce off the centerline of the descending channel back in Nov 18' causing a rally over 16%.
There was a breakout of it's descending channel on Dec 31st 18' marking the first time it has sustained meaningful trading outside this trajectory since July 2016! For Silver to go full bull mode with its counterpart Gold it needs to first break above it's own 200 Week MA. It got rejected once and now is in a profit taking pattern. We will need to watch this closely because a sustained break above it's 200 Week MA would mean a likely retest at 161.8% extension from Nov lows.
If things reverse it would be very bearish signal for Silver to fall back inside it's descending channel . So we would want to see silver bounce off the 38.2% Fib extension if you're looking to go long. If you're a bear you want to see a sustained break back inside the channel and then shorting just under the 38.2% extension as there is lots of air down to the Nov 18' lows.
Regards,
Bobby
Silver has been on a nice run since the double bottom bounce off the centerline of the descending channel back in Nov 18' causing a rally over 16%.
There was a breakout of it's descending channel on Dec 31st 18' marking the first time it has sustained meaningful trading outside this trajectory since July 2016! For Silver to go full bull mode with its counterpart Gold it needs to first break above it's own 200 Week MA. It got rejected once and now is in a profit taking pattern. We will need to watch this closely because a sustained break above it's 200 Week MA would mean a likely retest at 161.8% extension from Nov lows.
If things reverse it would be very bearish signal for Silver to fall back inside it's descending channel . So we would want to see silver bounce off the 38.2% Fib extension if you're looking to go long. If you're a bear you want to see a sustained break back inside the channel and then shorting just under the 38.2% extension as there is lots of air down to the Nov 18' lows.
Regards,
Bobby