Silver double bottom and channel
Updated
Fairly clear double bottom gone in at the 15.7 level for Silver, and the direction has changed as we see in the rising channel.
You can see we've broken through at zone of support and resistance at 16.2 and that should provide a base now for us to move higher.
Look for long positions from close to the bottom of the channel, to capitalise on this move. I believe, looking on longer timeframes, that even if silver (and gold) turns bearish and seeks new lows, that we have a good chance of reaching 17 or higher. THe previous high of this chart, 16.7, is likely to provide resistance too, but I believe it is likely to be overcome. If we look on longer timeframes, you can see we've only just begun to retrace a large bearish move, so it's likely to give 1/3 or 1/2 of that move back at the least.
As a market Silver does tend to make most of its moves in short bursts followed by long periods of consolidation. These bursts can deliver quite big gains in short times, but can also reverse very quickly if the price is not accepted at new levels, so don't be greedy, and take those profits while they are there.
You can see we've broken through at zone of support and resistance at 16.2 and that should provide a base now for us to move higher.
Look for long positions from close to the bottom of the channel, to capitalise on this move. I believe, looking on longer timeframes, that even if silver (and gold) turns bearish and seeks new lows, that we have a good chance of reaching 17 or higher. THe previous high of this chart, 16.7, is likely to provide resistance too, but I believe it is likely to be overcome. If we look on longer timeframes, you can see we've only just begun to retrace a large bearish move, so it's likely to give 1/3 or 1/2 of that move back at the least.
As a market Silver does tend to make most of its moves in short bursts followed by long periods of consolidation. These bursts can deliver quite big gains in short times, but can also reverse very quickly if the price is not accepted at new levels, so don't be greedy, and take those profits while they are there.
Note
So held the channel over weekend and sunday trading, still scraping the bottom but broken the recent series of lower highs. Could be setting up for a rip to 17 here. You could enter long with a 10c stop targetting the 50c move to 17 (or maybe even higher, see daily chart linked)Note
So 17 target hit and some profit taken but remaining long as per daily chart linked to this.
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