Silver Final Push Lower to $22.00
Silver forming ABCDE trend continuation pattern prior to the US election with final E wave to complete.
A bearish candle reversal is critical at the distribution zone to enter silver short to fulfil final E wave drop.
- Price holding below the 200 EMA
- Price holding below the 50 EMA
- Break of trend line will support a secondary option to enter
- Bearish candle may form at the 61.8% Fibonacci retracement coinciding with $23.75 resistance and 200 EMA.
Support – $22.60, $22.00
Resistance – 50 EMA, 200 EMA, $23.75, $24.10
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – $23.70
Supporting Entry – $23.50
Candle Reversals for entry
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 above 24.27676 – 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 $23.70 – Target 1 $22.00 = Reward to Risk
Supporting Entry $23.50 – Target 1 $22.00 = Reward to Risk