ForrestForex

Long Term Silver Trade

Long
FX:XAGUSD   Silver / U.S. Dollar
8
I have been waiting for a chance to enter on a long term silver position for a while now. Within the next 8 months I expect for silver to come back into the mid to high twenties for the following reasons.

-Looking at the weekly chart, We have a completion of a bat right at the 15.500 level which has been previous support and resistance, and we have a nice reversal so far.

-We had a nice breakout of the triangle in June, followed by a channel which appears to be a trend continuation pattern. The completion of the bat retested the trendline of the triangle. If we can get a breakout of this channel we are currently in, I think it will be an excellent buy.

-Target is based on completion of an extended ABCD pattern and a fib level measured from significant high at 50 to significant low at 13.500

-Looking at the dollar Index, I see a weak dollar for the next year, which supports this analysis.

Patience is key, wait for the signs to show themselves and enter.

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