As we all can see a heavy metals sell-off has been started as investors’ optimism for a June rate hike rose to its highest level, after the Federal Reserve left its benchmark rate unchanged but downplayed slower first-quarter economic growth.
Also as far as Europe area after uncertainty surrounding the outcome of the French presidential election eased, following a strong performance by pro-EU candidate Emmanuel Macron in a TV presidential debate against Marine Le Pen ahead of the final vote on Sunday.
So as risk is reduced and dollar's future seems bullish we had this sell-off that it may end or continue a days more given fuel by NFP release tomorrow.
TECHNICALLY
We can see at the chart the two channels,the descending channel since August 2016 and the ascending channel since we broke previous lows at late January of 2017.
History repeats itself as we notice after the double top formed at 2016 we had a 13% decrease at Silver's price at late September and then a bounce back before we continue the down trend.
Now if we look recent price actions something looks familiar and that's because market geometry exists.So if we copy AB and BE and create A'B' AND B'E' we can see that we have the exact same price action.
Having the Fibonacci retracements from August 2016 descending move,we see the price coming up to 61,8% Fibonnaci retracement and being unable to switch the trend to bullish,it continued it's bearish trend.
We can see price bouncing of the top trend line of 2016's descending channel and coming down to this trend line once again while entering a very strong support area and demand zone.
RSI strategy which is well respected by price action indicates oversold levels and possible short-term reversal.
POSSIBLE TRADE WITH P/L RATIO OF 3,55
FIRST TARGET AT 17,5$ WHERE 200EMA AND 38,2% FIB LEVEL EXIST
SECOND TARGET AT 18,5$ WHERE PREVIOUS HIGHS AND 61,8% FIB LEVEL EXIT
STOP LOSS AT 15,6$ UNDER STRONG RESISTANCE AREA
HAPPY TRADING GUYS!
THANKS FOR SUPPORT
Also as far as Europe area after uncertainty surrounding the outcome of the French presidential election eased, following a strong performance by pro-EU candidate Emmanuel Macron in a TV presidential debate against Marine Le Pen ahead of the final vote on Sunday.
So as risk is reduced and dollar's future seems bullish we had this sell-off that it may end or continue a days more given fuel by NFP release tomorrow.
TECHNICALLY
We can see at the chart the two channels,the descending channel since August 2016 and the ascending channel since we broke previous lows at late January of 2017.
History repeats itself as we notice after the double top formed at 2016 we had a 13% decrease at Silver's price at late September and then a bounce back before we continue the down trend.
Now if we look recent price actions something looks familiar and that's because market geometry exists.So if we copy AB and BE and create A'B' AND B'E' we can see that we have the exact same price action.
Having the Fibonacci retracements from August 2016 descending move,we see the price coming up to 61,8% Fibonnaci retracement and being unable to switch the trend to bullish,it continued it's bearish trend.
We can see price bouncing of the top trend line of 2016's descending channel and coming down to this trend line once again while entering a very strong support area and demand zone.
RSI strategy which is well respected by price action indicates oversold levels and possible short-term reversal.
POSSIBLE TRADE WITH P/L RATIO OF 3,55
FIRST TARGET AT 17,5$ WHERE 200EMA AND 38,2% FIB LEVEL EXIST
SECOND TARGET AT 18,5$ WHERE PREVIOUS HIGHS AND 61,8% FIB LEVEL EXIT
STOP LOSS AT 15,6$ UNDER STRONG RESISTANCE AREA
HAPPY TRADING GUYS!
THANKS FOR SUPPORT
Trade active
Trade active
Comment:
Nice price behaviour so on...
Trade active:
Isn't that beautiful??I love when market listens to me..
Comment:
Great resistance at those levels,if the 17$ resistance breaks we will see the first target for sure.
Trade active
Comment:
Who could ask a better entry on this one?Soon at the first target...
Comment:
If current trend line broken with a daily close candlestick close position and take profits.
Happy trading!
Happy trading!
Trade closed: target reached:
T1 reached...Good solid trade the depreciation of dollar for sure helped but anyway it was 800 pips trade before that...Good for those they took the trade...Thanks for support...Happy trading..
