The silver price has been captured within a descending trend channel for 2 months. The last days it has tested the upper limit of this channel and it seems that it´ll break through in the next time.
This is good news and it gives way to higher levels. The next aim should be the swing trend line (resistance) at 17,22$ and / or the long descending trend line (pointed) - which had formed the chart pattern "3 descending peaks".
To give more bullish signal the silver price has to break not only the resistance at the 17,22$ but also the descending trend line (~17,58$).
It´s very probable that - after reaching the 17,20$ - level the silver price rebounds and stays for a while between the swing trend line and the fib retracement 38.2% (green) / 16,6$.
But I expect Silver to rise further sooner or later to levels at 18,34$ (fib retracement 61.8%).
Indicators: RSI and MACD positive!
Stop:
if Silver falls back into the negative trend channel and breaks the support (38.2%) to the bottom this analysis would be false.
This is good news and it gives way to higher levels. The next aim should be the swing trend line (resistance) at 17,22$ and / or the long descending trend line (pointed) - which had formed the chart pattern "3 descending peaks".
To give more bullish signal the silver price has to break not only the resistance at the 17,22$ but also the descending trend line (~17,58$).
It´s very probable that - after reaching the 17,20$ - level the silver price rebounds and stays for a while between the swing trend line and the fib retracement 38.2% (green) / 16,6$.
But I expect Silver to rise further sooner or later to levels at 18,34$ (fib retracement 61.8%).
Indicators: RSI and MACD positive!
Stop:
if Silver falls back into the negative trend channel and breaks the support (38.2%) to the bottom this analysis would be false.
Trade active:
bulls and bears fight at resistance (swing trend line)
Comment:
I expect some sideways movement, because RSI is overbought and MACD is strong.
Trade active:
Silver fell back abruptly on to the support at 16$. This has been strong enough to halt the dip.
Trade active:
Trade closed manually:
In the retrospective we can analyse the last breakout of the negative trend channel as "bull trap". We can be glad that we got time to take profit (short term investors).
Now we´re back in the trend channel. As the indicators RSI and MACD don´t show strength I expect to stay in this channel for a while; till the strength (momentum) comes back (or any geopolitical news).
The good news are: we´re still above the very long descending trend line! And the next support (swing trend line) is nearby.
Now we´re back in the trend channel. As the indicators RSI and MACD don´t show strength I expect to stay in this channel for a while; till the strength (momentum) comes back (or any geopolitical news).
The good news are: we´re still above the very long descending trend line! And the next support (swing trend line) is nearby.