A trade setup in silver?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.