For both the bullish and bearish versions of the ABCD chart pattern, the lines AB and CD are known as the legs while BC is called the correction or retracement.
Simple, right? All you have to do is wait for the entire pattern to complete (reach point D) before taking any short or long positions.
Silver is still in correction, but has already dropped more than 61.8% Fibonacci Level and in addition we are at the lower BB(20,2). This should be a typical buy zone (see circle in pink), but there is no guarantee for higher prices. For me it is time to buy. A break out is possible every day. Be aware it is a risky trade!
as soon as we break into the zone indicated start selling silver short ... we are sitting right on the support line ... we are at the resistance line of the DXY (dollar index) aswell ... the two are highly correlated .. i believe both will be broken in the near term.
this is a fast market so move should be quick and clean .. the way i like it :)
Silver has formed a bearish triangle shaped pattern close to the downsloping median line and 20 MA. A breakout to the downside is going to project the price lower (target round 20.50)
If silver does drop further into the 17-21 area, it will be the buying opportunity for which we have been waiting for years. Silver should ultimately rise to new all-time highs in the 2015-2017 timeframe, and it would never again drop below US$50 thereafter.
Silver traded during the last month in a triangle shaped consolidation pattern. It didn't manage to cross the 20MA. Today break to the downside suggests the downtrend has resumed with target on the main support area. A trade below the 01 March pivot low would be the final confirmation. Buy put option could be traded at this point.
Silver has been moving inside a consolidation pattern since mid Feb. Support and resistance of the pattern tend to converge to form a triangle. Price is supported by the lower parallel line. A break-out from this pattern is going to trigger buy orders. Medium term target objective should be 31.7.
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Next week, we should know witch direction market looking to go. End of consolidation
