4 Hour Time Frame: Strong bullish Engulfing pattern at key Fibonacci level and price.

Silver

 A simple way to find support and resistance in Silver is to plot price intervals of $XX.50 as seen in the labelled examples, watch and back test price behaviour at these levels for opportunities or clusters with Fibonacci levels or moving averages.

Silver

Silver has yet to break its All Time High price while Gold has achieved this milestone.  

Caution: Job numbers in the US were better and expected on Friday, but trade balance figures were poor. How the market interprets the data VS the safe havens in Gold and Silver will be evident in the next week.

Key Points:

  • Price to reclaim 50 EMA
  • 4 Hour – Bullish Engulfing Pattern
  • 4 Hour – RSI Range Break
  • Price holding Fibonacci 78.6% retracement level
  • Crosses trend line
  • 1 Hour – RSI range break

Key Levels:

Support – 26.50, 26.40

Resistance – 50 EMA, 200 EMA, 27.50, 28.50, 29.00

Entry Zone:

Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.

Optimal Entry –26.65

Supporting Entry – 26.90

Candle Reversals for entry

  • 4 Hour Bullish Engulfing
  • Look for 1 Hour candle reversals for stronger execution

The Risk:

As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.

If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.

IF: Price breaks below 26.40 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.

Reward / Reward Targets:

Optimal Entry 26.65 – Target 1 28.50 = 3.6x Reward to Risk

Optimal Entry 26.65 – Target 2 29.90 = 6x Reward to Risk

 

Supporting Entry 26.90– Target 1 28.50 = 2x Reward to Risk

Supporting Entry 26.90– Target 2 29.90 = 3.8x Reward to Risk