Silver ranged between $26 and $31 in January 2011, then rose for 3 months straight appreciating 76.5%.Silver

Silver currently sitting between $26 and $30 during an era filled with uncertainty and risk. Key metrics to consider is Gold has broken its All Time Highs, while silver has yet to even test these levels.

Silver

 

Key Points:

  • Price holding above the 200 EMA
  • Price hugging below the 50 EMA – Watch to reclaim
  • 6% Fibonacci will also act as resistance (September high – September Low)
  • Flag pattern for break out
  • RSI could break trend and range simultaneously for momentum
  • Consider moving stop to break even when silver hits 28.13 (September open)

Key Levels:

Support – 26.70, 200 EMA

Resistance – 50 EMA, 27.60, 28.13, 28.90, 29.90

Entry Zone:

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

Optimal Entry – 27.20

Supporting Entry – 27.40

Candle Reversals for entry

  • Bullish Hammer
  • Bullish Engulfing
  • Bullish Piercing

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 26.69 level and violates 200 EMA – 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 27.20 – Target 1 28.90 = 3x Reward to Risk

Optimal Entry 27.20 – Target 2 29.90 = 5x Reward to Risk

Supporting Entry 27.40 – Target 1 28.90 = 2x Reward to Risk

Supporting Entry 27.40 – Target 2 29.90 = 3.5x Reward to Risk