Silvers recent move up resembles an impulsive non-volatile trend (once resistance is broken it immediately becomes support, without much overlap)
Saying that, we see price being rejected at $19.60 (a level I pointed out in an earlier idea), support at $18.50 failed so that puts my first target around $17.50 (confluence of support consisting of 0.5 Fibonacci level with the rising trend-line drawn from past significant low swing points) I also like this level because it was never really back tested, unlike 0.382 Fibonacci level around $16.66 and the previous swing high around $15.60.
I'll post a snapshot of the 4 hour chart showing silvers final push up was a break above a rising wedge (often indicating a false break), where it failed to retain support. Ultimately, it just looked overbought and a pullback was due.
I've shown two additional entries at lower prices, both which have been back tested and held as support. Honestly, I'm not expecting a really deep pullback as price could reverse higher at any time with shift in risk sentiment.
I show an upside target back retesting the highs around $19.60 (which remains strong resistance on the weekly chart), but I think a base of support needs to be built above $18.50 before we see new highs).
Recent breakdown of the Gold / Silver ratio should support bullish momentum.
Retaining my long bias with buy the dip mentality.
Also, there is evidence that large entities are interested in accumulating physical. www.gata.org/node/19388
Will be watching S&P for signs of reversal as it creeps back up into previous strong resistance levels towards all time highs (initiating a shift back to risk off sentiment).
Saying that, we see price being rejected at $19.60 (a level I pointed out in an earlier idea), support at $18.50 failed so that puts my first target around $17.50 (confluence of support consisting of 0.5 Fibonacci level with the rising trend-line drawn from past significant low swing points) I also like this level because it was never really back tested, unlike 0.382 Fibonacci level around $16.66 and the previous swing high around $15.60.
I'll post a snapshot of the 4 hour chart showing silvers final push up was a break above a rising wedge (often indicating a false break), where it failed to retain support. Ultimately, it just looked overbought and a pullback was due.
I've shown two additional entries at lower prices, both which have been back tested and held as support. Honestly, I'm not expecting a really deep pullback as price could reverse higher at any time with shift in risk sentiment.
I show an upside target back retesting the highs around $19.60 (which remains strong resistance on the weekly chart), but I think a base of support needs to be built above $18.50 before we see new highs).
Recent breakdown of the Gold / Silver ratio should support bullish momentum.
Retaining my long bias with buy the dip mentality.
Also, there is evidence that large entities are interested in accumulating physical. www.gata.org/node/19388
Will be watching S&P for signs of reversal as it creeps back up into previous strong resistance levels towards all time highs (initiating a shift back to risk off sentiment).
Comment:
Silver 4 hour chart showing break above rising wedge, price rejection, failure of support on retest.
