Possible correction scenario on silver is due which may give a good buy entry.
Advantages of this scenario:
1. Bearish Crab pattern detected which suggests a small correction. 2. Breakout of channel. Resistance now becomes support. It may bounce on pullback. 3. The suggested region of 50% to 61.8% is the region to get a buy entry. 4. There is a critical support line that may block access to the 61.8% fib, but as long as it touches it is all good. 5. Overbought. 6. A possible evening star candlestick is currently being printed. The long legged doji on top indicates a possible reversal.
Disadvantages that do not favor this scenario:
1. Huge volume green volume bars everywhere. Total invasion. 2. It may just continue its way up non stop.
The market does not care about patterns or whether if we are right or wrong but is generous enough to give us hints or high probability scenarios.
Some fundamentals to consider are: People are afraid and there is uncertainty. China trade war, high world debt (debt has to be paid), economic slowdown,etc. The more uncertainty and the more fear, the better for precious metals.
Not financial advice.
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