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Contributed Commentaries

A trade setup in silver?

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

The natural symmetry in price charts never ceases to amaze me. Below is a 4-hour silver chart showing levels of support and resistance outlining the series of lower highs and lows the price has put in.

Momentum is turning back up and a clear overhead target is present; I think traders have a solid baseline upon which to define risk reward and act accordingly.

A zoom out to the daily chart thickens the contrarian lens through which I am looking at this metals market:

Sentiment is worsening still, while price is already deeply oversold. As I wrote Friday - I'm not sure if there is a bit lower to go, but I continue to believe a rally is imminent and the clarity in support and resistance facilitates taking the trade, in my opinion. I would have a target at $22 and a stretch at $22.50 spot, perhaps with a stop at today's low?

Thanks and good luck.

By Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.