Marcelle_Nel

Silver coiling up for next leg up?

Long
TVC:SILVER   CFDs on Silver (US$ / OZ)
Silver has been forming a very defined symmetrical triangle in the last week or so. There also seems to be a hidden bullish divergence on the chart with price action forming higher lows yet RSI prints lower lows. This tends to be a signal of a continuation of the overall trend (which is towards the upside in my opinion. Also, as indicated by the broken line on the RSI silver is has just now found a bounce on the historical point of control. See beck over the last month where silver bounces off the line multiple times. MACD also seems about to cross bullishly. Symmetrical triangles also tend to break upwards most of the times.

Final verdict: Silver seems perfectly positioned to break out bullishly from this triangle in the short term towards the upper breakout target.

Comments

I liked the way you showed your uncertainty displaying possible directions (break out/down targets); I respect your experience as Iam a begginner in trading, the RSI divergence indicates drop??
+1 Reply
Marcelle_Nel DAZITRADE
@DAZITRADE that RSI shows a hidden bullish divergence which usually indicates continuation of the current trend. Since silver is clearly setting higher lows and lower highs, and given the macro environment and silver's over all bullish trajectory since March I believe it's more likely to break out to the upside.
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in H4 I could spot H&S, now testing the neckline...
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I agree because of the Macro conditions.
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DAZITRADE Cryptobeginning2012
@Cryptobeginning2012, could you elaborate a bit more on Macro conditions please!
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@DAZITRADE, Macro economics is the taking the big picture of all micro economics and applying to whatever you want. In this case, silver which is a natural hedge against the dilution of the money supply by increasing what is in circulation much like extra federal unemployment and stimulus checks that people actually see in their account versus a bailout for X company which no one sees except that company (not even employees in many cases).
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