Been waiting on this one for a minute. Silver last daily close was an invitation to long but hey, let's see what's going on.
Silver has been on the up like everything else since last September/October. It went from 18.00 all the way to 24.50, it's huge, a 30% increase in 3-4 months, but, then, it's been hitting the ceiling pretty hard. I can count 6 touch on the Daily. Of course, we helped it going down when it decided it was enought, but here it is now, dropping a nice and sweet pinbar right on the trendline, so, it might want to go back up a little bit.
The situation :
1) We're still in an uptrend
2) Dollar has been strong lately, but DXY and all the related USD pairs act like they can take a break from dollar's push
3) Price formed a nice Daily pinbar,
4) Price is acting like it's bouncing from the trendline, like it already did 5 times in the past
5) If you look left, you can see that price is located where an imbalance has been created last November, it could still be orders pending right where we at right now
6) Price has come close to our area of interest in a corrective manner, see the falling pennant following the big drop. A descending pennant in a downtrend is usually a reversal pattern
7) Price wicked off the psycological 21.00 level
8) Finally my oscillator has been wayyyy oversold, for a minute, and the blue line just crossed the orange line, under the 15 level
Well, Silver, we've made a pretty strong case in favor of a raise, even temporarely, going for the 0.38 - 0.61 area of the previous drop.
This is just an idea, and I can be wrong, just pointing the facts, and there are lots of facts
Cheers everyone and safe trading!!
Silver has been on the up like everything else since last September/October. It went from 18.00 all the way to 24.50, it's huge, a 30% increase in 3-4 months, but, then, it's been hitting the ceiling pretty hard. I can count 6 touch on the Daily. Of course, we helped it going down when it decided it was enought, but here it is now, dropping a nice and sweet pinbar right on the trendline, so, it might want to go back up a little bit.
The situation :
1) We're still in an uptrend
2) Dollar has been strong lately, but DXY and all the related USD pairs act like they can take a break from dollar's push
3) Price formed a nice Daily pinbar,
4) Price is acting like it's bouncing from the trendline, like it already did 5 times in the past
5) If you look left, you can see that price is located where an imbalance has been created last November, it could still be orders pending right where we at right now
6) Price has come close to our area of interest in a corrective manner, see the falling pennant following the big drop. A descending pennant in a downtrend is usually a reversal pattern
7) Price wicked off the psycological 21.00 level
8) Finally my oscillator has been wayyyy oversold, for a minute, and the blue line just crossed the orange line, under the 15 level
Well, Silver, we've made a pretty strong case in favor of a raise, even temporarely, going for the 0.38 - 0.61 area of the previous drop.
This is just an idea, and I can be wrong, just pointing the facts, and there are lots of facts
Cheers everyone and safe trading!!
Trade closed: stop reached
Comment:
trendline was not well drawn, my fault, that's the thing with trendline, it can be tricky sometimes