On Friday we've arrived to important levels in silver.
We hit the support of the 61.8 Fibonacci retracement on Friday (16.49$). We also tagged the the downtrend channel's lower trendline and the 300 SMA. (I changed the 200 SMA to the 300 SMA because in silver it seems to be working better.) In MACD and TSI divergencies are started to be forming.
I closed 50% of my hedges in silver on Friday. Silver's intermediate rally topped on the 1st of July. We had a 4.5 months decline since that time and the pullback had erased the 61.8% of the previous rally. In the commodity complex this kind of pullback used to be enough in the past.
We have a very important and strong support zone below this level : 15.98$. We needed 2 months to break this level at the beginning of this year. 15.98 is a multi year support. I will close the rest of my hedges if I have a confirmation that 61.8 FIBO was the bottom or if we have one more short drop down to 15.98$.
If we break significantly below 15$ - and testing the support of 14.6$ - that would be dangerous for this bull market.
LONG ENTRY
We hit the support of the 61.8 Fibonacci retracement on Friday (16.49$). We also tagged the the downtrend channel's lower trendline and the 300 SMA. (I changed the 200 SMA to the 300 SMA because in silver it seems to be working better.) In MACD and TSI divergencies are started to be forming.
I closed 50% of my hedges in silver on Friday. Silver's intermediate rally topped on the 1st of July. We had a 4.5 months decline since that time and the pullback had erased the 61.8% of the previous rally. In the commodity complex this kind of pullback used to be enough in the past.
We have a very important and strong support zone below this level : 15.98$. We needed 2 months to break this level at the beginning of this year. 15.98 is a multi year support. I will close the rest of my hedges if I have a confirmation that 61.8 FIBO was the bottom or if we have one more short drop down to 15.98$.
If we break significantly below 15$ - and testing the support of 14.6$ - that would be dangerous for this bull market.
LONG ENTRY