According to the last Silver COT Report we can see that it continues dominating “long” contract size positions. And that’s why I expect the price to go for a second top near the 22.50000 area.
After price closed above the 4H critical zone at 19.60000 we saw a strong upward momentum towards the monthly critical near 22.80000. Price closed above two critical zones without doing any corrections, so now it is the right moment to do one.
We have 2 good trading opportunities:
1. Since we can see the bullish dominance from a COT perspective, we can expect the price to receive support from the monthly critical near 21.00000 and then create a second top near 22.80000. After that, a strong correction will come into the play. It will most likely go down towards the daily critical near the 18.00000 mark. But we must be cautious with the 4H critical zone near 19.50000. A second top will be a good indicator for the build-up of a “M” structure.
2. The second possible sell entry will be at the neckline of our new “M” formation near 20.80000. It also aligns perfectly with the 0.618 Fibonacci level of the previous downwave and with the monthly critical area.
Good indicators for an entry will be strong rejection from the critical zones!
Happy Trading!
After price closed above the 4H critical zone at 19.60000 we saw a strong upward momentum towards the monthly critical near 22.80000. Price closed above two critical zones without doing any corrections, so now it is the right moment to do one.
We have 2 good trading opportunities:
1. Since we can see the bullish dominance from a COT perspective, we can expect the price to receive support from the monthly critical near 21.00000 and then create a second top near 22.80000. After that, a strong correction will come into the play. It will most likely go down towards the daily critical near the 18.00000 mark. But we must be cautious with the 4H critical zone near 19.50000. A second top will be a good indicator for the build-up of a “M” structure.
2. The second possible sell entry will be at the neckline of our new “M” formation near 20.80000. It also aligns perfectly with the 0.618 Fibonacci level of the previous downwave and with the monthly critical area.
Good indicators for an entry will be strong rejection from the critical zones!
Happy Trading!