Will the Silver Rally Continue?
Updated
Silver tends to move in a very specific way. It moves very fast for a few days, only to act very calm in the next several days. Silver already lost its downward momentum as its been calm for a few days now. This characteristic pattern is what we saw also when Silver completed a broad top (just as it did recently) earlier this year.
What does it all come to?
For the 24 hours, Silver rose 1.22% against the USD and closed at USD 16.97 per ounce, tracking gain in gold prices. We prefer Long positions around 17.00 with targets at 17.1500 (and follow to 17.60 if extends) and Stop Loss: below $16.89.
The price have bounced just a bit from the support trend line on 1-hour chart, which of course is a bullish sign. Additional, the white metal is showing convergence with its H1 20-day moving average and is trading above its 50 Hr SMA.
The Silver seasonality also suggests that the short-term decline in the white metal might be over or close to being over as local bottoms tend to form close to the middle of November.
The daily RSI is bullish and calls for further upside. More interestingly, on the daily chart the Stochastic indicator just moved to levels that are low enough to indicate a short-term buying opportunity on their own. This simple technique worked very well in the previous 12 months. But on the H1 chart both indicators are in overbought zone, so we can see a little bit downside pressure to the support trend line around $16.96. We like the idea of buying dips, and it appears that we have just saved the overall uptrend, at least so far.
In conclusion, with all that in mind - Are you agree with our long positioning?
What does it all come to?
For the 24 hours, Silver rose 1.22% against the USD and closed at USD 16.97 per ounce, tracking gain in gold prices. We prefer Long positions around 17.00 with targets at 17.1500 (and follow to 17.60 if extends) and Stop Loss: below $16.89.
The price have bounced just a bit from the support trend line on 1-hour chart, which of course is a bullish sign. Additional, the white metal is showing convergence with its H1 20-day moving average and is trading above its 50 Hr SMA.
The Silver seasonality also suggests that the short-term decline in the white metal might be over or close to being over as local bottoms tend to form close to the middle of November.
The daily RSI is bullish and calls for further upside. More interestingly, on the daily chart the Stochastic indicator just moved to levels that are low enough to indicate a short-term buying opportunity on their own. This simple technique worked very well in the previous 12 months. But on the H1 chart both indicators are in overbought zone, so we can see a little bit downside pressure to the support trend line around $16.96. We like the idea of buying dips, and it appears that we have just saved the overall uptrend, at least so far.
In conclusion, with all that in mind - Are you agree with our long positioning?
Trade closed: stop reached
The SL was hit at Monday, but after that on 19th Nov. the price made rally and the signal was fulfilled.
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