JamesHelliwell
Short

Negative divergence warning to longs in overcrowded Silver trade

FX:XAGUSD   Silver/U.S. Dollar
3 months ago
Negative divergence in momentum indicators including the RSI shouldn't be ignored by longs in the overcrowded Silver             trade.

  • Silver             currently trading around 20.20
  • Selling has been seen 50 cents higher around 20.70 over the past month
  • Support levels: 19.09 (38%), 17.83 (62%), 16.94 (78%)
  • Resistance level: 21.12 (high pivot)
  • Downside target: $18 (and possibly a test of the upward sloping 2016 trend line currently above $17)
  • Trade management: Sell within 20.17-76 with a stop (on daily close) above 21.12

For further insight and discussion please contact me via Tradingview or LinkedIn             , on Twitter @James_LVDTA, and visit www.lexvandam.com to become a member of the Trading Club.
3 months ago
Trade closed manually: The case for a retracement may no longer be valid:
Gold to catch up to a stronger Yen


Do not get caught short precious metals as the case for owning gold appears to be regaining ground as USDJPY falls.
nadheem21
3 months ago
Thank you, James! Seems to be a perfect analysis!!
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Silver is now at a 7-week low, having fallen for 3 consecutive weeks, the worst losing streak since May 27th. You were warned.
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snapshot
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stefanhb46 PRO JamesHelliwell
3 months ago
Hi James! Are you expecting further downside in XAG due to the negative divergence? Glued around the 50% fib at the moment? Im a big fan of the 50% & 61.8% fib levels for trading off, but your brilliant analysis on negative divergence with the RSI has me questioning myself haha. Its not something Iv'e looked at before. Thanks James!
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JamesHelliwell PRO stefanhb46
3 months ago
Hi Stefan

Lex and I discussed this in detail in our September Trading Club meeting produced recently for the month ahead, which became available to members yesterday. It might be worth taking a look if you are interested - www.lexvandam.com/en/trading-club
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stefanhb46 PRO JamesHelliwell
3 months ago
Thanks for the reply James! I will take a look! Can't argue with a free trial! :-)
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