Silver has been in a steady decline since mid Feb guided by a descending trendline.
Looking at the lower highs and lower lows formation developed over the past three months we can clearly identify a descending wedge pattern. Descending wedges are typically approached as a bullish pattern.
One more thing to note: I'm not a fan of fib levels but in this instance we can clearly see the price reacting to these levels and it is currently situated around the 78.6 retracement of the previous up move.
Due to the confluence of factors I expect Silver to break out to the upside from this formation.
Entry trigger: Longs can be placed when the daily candle closes above the descending trendline.
Stop loss: 2xMAXATR from entry.
Profit targets: Fib levels 38.2 and 23.6.
Timeframe: 3-4 months.
Risk: 1% of your trading capital.
This information is for educational purposes only. Not financial advice.
Looking at the lower highs and lower lows formation developed over the past three months we can clearly identify a descending wedge pattern. Descending wedges are typically approached as a bullish pattern.
One more thing to note: I'm not a fan of fib levels but in this instance we can clearly see the price reacting to these levels and it is currently situated around the 78.6 retracement of the previous up move.
Due to the confluence of factors I expect Silver to break out to the upside from this formation.
Entry trigger: Longs can be placed when the daily candle closes above the descending trendline.
Stop loss: 2xMAXATR from entry.
Profit targets: Fib levels 38.2 and 23.6.
Timeframe: 3-4 months.
Risk: 1% of your trading capital.
This information is for educational purposes only. Not financial advice.
Trade active:
Confirmed break to the upside of descending trendline.
If you missed the entry on the break late last week I would wait for a retrace into the 14.65-14.50 area and open longs from there.
If you missed the entry on the break late last week I would wait for a retrace into the 14.65-14.50 area and open longs from there.
Trade closed: target reached:
Both targets reached as planned.