Silver soars, we will see a counterreaction at around 25!
The soar of silver was just a matter of time and the end of the rally is far away. Price has to go to 50! Do I think over 50? Maybe, but defo to 50.
So what means the shown picture? We can see the supportzone built at the last ath at around 25-26. This zone is now a KEY RESISTANCE zone. Considering that we pricked the down channel very well this week, the thesis of an valid up trend is confirmed.
What will happen next?
I give you an OVERVIEW for the next months. I assume a reaction at the ancient resistance level at around 25. When price is rising fast to that level it would be highly overbought. A counterreaction will be the plunge to a previous important level were purchasing power is high.
That´s around 21 where you can find also a fiblevel.
So you got an overview you can use to go smoothly into the analysis of smaller timeframes. Always be patient for the BIG PICTURE.
BG
So what means the shown picture? We can see the supportzone built at the last ath at around 25-26. This zone is now a KEY RESISTANCE zone. Considering that we pricked the down channel very well this week, the thesis of an valid up trend is confirmed.
What will happen next?
I give you an OVERVIEW for the next months. I assume a reaction at the ancient resistance level at around 25. When price is rising fast to that level it would be highly overbought. A counterreaction will be the plunge to a previous important level were purchasing power is high.
That´s around 21 where you can find also a fiblevel.
So you got an overview you can use to go smoothly into the analysis of smaller timeframes. Always be patient for the BIG PICTURE.
BG
Comment:
As silver has broken out of its downtrend this year, the overlying chart image is long. Possible double bottom on the trendchannel when exceeding the USD 23.53 mark. Good entry opportunity for a long position. If the 22.90 mark is broken, downward potential is possible until strong resistance at 21.22 USD is reached. It makes little sense to go against the trend and go short the way from 22.90 USD to 21.22 USD unless you have money to give away. If you have money to give away, please write me a message, then I will send you information about donation possibilities.
At 21.22 USD is the desired, perfect zone for a mid to longterm long position.
As silver has broken out of its downtrend this year, the overlying chart image is long. Possible double bottom on the trendchannel when exceeding the USD 23.53 mark. Good entry opportunity for a long position. If the 22.90 mark is broken, downward potential is possible until strong resistance at 21.22 USD is reached. It makes little sense to go against the trend and go short the way from 22.90 USD to 21.22 USD unless you have money to give away. If you have money to give away, please write me a message, then I will send you information about donation possibilities.
At 21.22 USD is the desired, perfect zone for a mid to longterm long position.
Comment:
Price is exactly doing the predicted movement. Watch out for the next move in the direction of 35 USD.
For now there is no opportunity to trade in the lower timeframe. We are now moving trough no mans land. There is a huge bearish correciton pattern that could lead us to lower prices. Green line could be a possible entry for a long position but it has to be confirmed.