Silver has crossed down in a triangle pattern the MM210 in the Monthly graphic, an ultra-bearish trend signal. If it breaks down the 13.500 support it could fastly be going down to its 10 support since 2008. Possibly MM70 will cross down the MM210 in the next months until it crosses up again in 2020 for a bullish market in commodities, but now there are good opportunities for shorting.
Once we are in the last months of 2019, it could start the commodities bull trend. This need to be correlated with stocks bearish cycle. Due to markets still being in a bull trend, the most favorable scenario is this one.
Strategy
Short position: At the market price, 14.13 Stop loss: 15.34 Take Profit: 10.50 Ratio R/B: 1/3 Wallet Risk: <1%.
When silver costs 10, it is the best moment to buy and hold long-term physical silver.
Nice idea on XAGUSD and there may be potential gains as you have identified by going short. For our set up, we have identified the key resistance and support levels. Currently, price is approaching our first resistance at 14.25. It is a horizontal pullback resistance and a 23.6% Fibonacci extension. RSI is seeing a bearish exit and we might see a corresponding drop in price. If a corresponding drop does occur, we may want to take a look at the 13.90 support level. It is a horizontal swing low support.
Please take a look at our idea and share with us what you think.
blockmas
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@easyMarkets, Thank you so much for sharing your vision. I think is a smart entry. Also, I think you could hold the operation more time, searching for a longer time horizon and bigger downtrend.
Please take a look at our idea and share with us what you think.