Silver has shown some good signs of recovery, breaking the neckline for a bullish formation at 17.30 and that extended the near term upside to the 200-days and a major horizontal resistance at 18.35 areas. This area is CRITICAL and should be broken to confirm more upside. If broken i see big upside potential at least towards 20.00.
Yesterday, price formed a hammer candle near the broken 17.30 resistance which now turns to near term support, therefore, my first scenario is a retest of that area again and buying silver for an initial target near 18.30 again, and for a second aggressive target on a breakout above 18.30 towards 19.85. A break below 16.70 would negate this scenario and reverse it to scenario two.
Second possible scenario is failure and a break back below 16.70, i would target 15.00 as an initial target and 14.00 as an aggressive target. Stop loss would be above 17.30 for this scenario.
Note: All stops based on candle closing.
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Good luck, keep your stops tight..
My best regards
Technician
Yesterday, price formed a hammer candle near the broken 17.30 resistance which now turns to near term support, therefore, my first scenario is a retest of that area again and buying silver for an initial target near 18.30 again, and for a second aggressive target on a breakout above 18.30 towards 19.85. A break below 16.70 would negate this scenario and reverse it to scenario two.
Second possible scenario is failure and a break back below 16.70, i would target 15.00 as an initial target and 14.00 as an aggressive target. Stop loss would be above 17.30 for this scenario.
Note: All stops based on candle closing.
Be one of the first 1k members of my new trading portal, check my new website thefxchannel.com/ , vote and subscribe. Thank you
Good luck, keep your stops tight..
My best regards
Technician