opinion

A trade setup in silver?

Kitco Media
By Jonathan Da Silva
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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.

Kitco Media

Jonathan Da Silva

Jonathan Da Silva developed a passion for hard money and economics from a young age having been influenced by family who sought to teach me that "nothing is free", and the importance of intrinsic value early on. My interest in markets grew keener during the great financial crisis of 2008; leaning on family with vast trading experience, I began to self-educate on technical analysis and economics- drawing inspiration from the works of individuals like W.D. Gann and Adam Smith. I have been a proud member of the Kitco team since 2017 and hope that my writing inspires readers to consider an objective view of the metals, and the greater financial markets.

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