Update: Stopped at Entry. See comments
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Fellow Risk Takers and Speculators,
NFP #s came out stronger than expected and cause a downward move in Silver and Gold. Price action caught support at the 61.8% fib retracement level of the previous swing from $15.49 to $18.45. What is key here is that this downward price move was mainly driven through the futures market (COMEX Gold and Silver). My speculation is that the physical market will find strong bids here and will unwind some of the futures driven price drop.
From a technical basis:
1. Trendlines | We have clear indication that the upsloping channel has caught much for the price action moves, the green circles drawn on the chart show the number of times the channel slope has caught the price action and price finds support or resistance at those points. In the recent move down, we see that price has caught support at the channel floor drawn in with a thick blue up-sloping trendline. I'm looking for prices to stay above this level.
2. Fibonacci Ratios | The 61.8% fib retracement level from the recent swing found support at $16.619 as shown on the chart. This again, acts as support and I'm looking for prices to stay above this level.
3. Fibonacci Extensions or AB=CD | If prices do stay above the support levels indicated by the two points above, we can use a fibonacci extension or AB=CD price movement to forecast possible take profit targets. The first target I'm looking at is based on the 61.8% extension of the major swing from $14 to $18.45. The completion of AB=CD would mark my second target at $21.
Looking for a high reward-to-risk trade here and going for bullseye!
Entry: 16.62
Stop Loss: 16.49
TP1: 19.3
TP2: 21
All the best
Luke
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Fellow Risk Takers and Speculators,
NFP #s came out stronger than expected and cause a downward move in Silver and Gold. Price action caught support at the 61.8% fib retracement level of the previous swing from $15.49 to $18.45. What is key here is that this downward price move was mainly driven through the futures market (COMEX Gold and Silver). My speculation is that the physical market will find strong bids here and will unwind some of the futures driven price drop.
From a technical basis:
1. Trendlines | We have clear indication that the upsloping channel has caught much for the price action moves, the green circles drawn on the chart show the number of times the channel slope has caught the price action and price finds support or resistance at those points. In the recent move down, we see that price has caught support at the channel floor drawn in with a thick blue up-sloping trendline. I'm looking for prices to stay above this level.
2. Fibonacci Ratios | The 61.8% fib retracement level from the recent swing found support at $16.619 as shown on the chart. This again, acts as support and I'm looking for prices to stay above this level.
3. Fibonacci Extensions or AB=CD | If prices do stay above the support levels indicated by the two points above, we can use a fibonacci extension or AB=CD price movement to forecast possible take profit targets. The first target I'm looking at is based on the 61.8% extension of the major swing from $14 to $18.45. The completion of AB=CD would mark my second target at $21.
Looking for a high reward-to-risk trade here and going for bullseye!
Entry: 16.62
Stop Loss: 16.49
TP1: 19.3
TP2: 21
All the best
Luke