Yellow zones- critical zones based on the monthly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Last week's the Silver COT Report showed us some signs for a possible shortage on long contracts. The price has finally broken over the monthly critical area at the 19.00000 zone and a few more attempts may be seen before a good correction takes place. 18.300 will be a good mark to take profit on the current down momentum and also to see if the price can break the current channel it's in. The "parallel" channel is being respected since the 15. June.
There are 2 scenarios:
1. If the price breaks bellow the 18.300 bottom-trendline there will be a good entry point. It will be at the neckline of the future "M" structure. Such an entry gives us a better confirmation for a possible downtrend correction.
2. If the price reaches the 18.300 area and just goes for a second attempt for a good close above the 19.00000 zone.
If the first scenario takes place, we need to see a strong rejection from the daily critical at the 16.85000 area which also aligns perfectly with the 0.5 Fibonacci retracement level. If this happens we can prepare for another attempt on the previous highs at 19.00000.
Happy Trading!
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Last week's the Silver COT Report showed us some signs for a possible shortage on long contracts. The price has finally broken over the monthly critical area at the 19.00000 zone and a few more attempts may be seen before a good correction takes place. 18.300 will be a good mark to take profit on the current down momentum and also to see if the price can break the current channel it's in. The "parallel" channel is being respected since the 15. June.
There are 2 scenarios:
1. If the price breaks bellow the 18.300 bottom-trendline there will be a good entry point. It will be at the neckline of the future "M" structure. Such an entry gives us a better confirmation for a possible downtrend correction.
2. If the price reaches the 18.300 area and just goes for a second attempt for a good close above the 19.00000 zone.
If the first scenario takes place, we need to see a strong rejection from the daily critical at the 16.85000 area which also aligns perfectly with the 0.5 Fibonacci retracement level. If this happens we can prepare for another attempt on the previous highs at 19.00000.
Happy Trading!