Silver - forming a major low could offer opportunity for long.
Since 2011 all time high in Silver and Gold, many analyst have been challenged to fully appreciate this correction to date. Some Bulls have been perplexed with fall below support in 26 area. Likewise many Bears have the initial decline and after some retracement are expecting it to drop to much lower level along with gold which they postulate could drop for decades.
However, taking in to consideration possible Dollar Index, major commodities such Oil and wider stock market, I think we have a major opportunity in both Silver and Gold. Though Silver could steal the show over next 18-24 months.
I only have limited price data at hand. If we had more historical price data overall view might need to be modified. However, for the next 18-24 months we have enough price data that is suggesting a very large rising wedge - see in snapshot of 3 monthly chart below.
If correct then we could retest the historical high. Since the 2011 high we have abc correction that looks very complete and potential low could form. Therefore, long entries could be planned on either confirmation or using gradual legging in or just plain far out of the money long term call option my preferred method.
As always, you must do your own analysis for your trade planning. Would love to hear specific alternatives if you wish to share. If you like the analysis please select to follow me and the chart. Share it with others in your traders circle.
Thank you for taking time to view my analysis.
However, taking in to consideration possible Dollar Index, major commodities such Oil and wider stock market, I think we have a major opportunity in both Silver and Gold. Though Silver could steal the show over next 18-24 months.
I only have limited price data at hand. If we had more historical price data overall view might need to be modified. However, for the next 18-24 months we have enough price data that is suggesting a very large rising wedge - see in snapshot of 3 monthly chart below.
If correct then we could retest the historical high. Since the 2011 high we have abc correction that looks very complete and potential low could form. Therefore, long entries could be planned on either confirmation or using gradual legging in or just plain far out of the money long term call option my preferred method.
As always, you must do your own analysis for your trade planning. Would love to hear specific alternatives if you wish to share. If you like the analysis please select to follow me and the chart. Share it with others in your traders circle.
Thank you for taking time to view my analysis.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.