Last time we posted an analysis on Silver we mentioned the increased possibility that at least a short-term bottom was formed after the aggressive sell off the pushed prices in two days from 26 to 22. The chart below is an update from last time where we noted the importance of the lower pitchfork support combined with the 2008 peak. Those two details were the reason why prices bounced right back up towards 25.
The upward move from 22$ is still considered as an upward correction. The pattern of the rise is still overlapping as there is no clear indicator of an move upwards. This overlapping pattern as shown in the chart below, is very helpful with trading as we can adjust our stops accordingly.
The first upward target has been achieved and it now only remains to be seen if buyers can break above the 25$ resistance and try to reach the 26$ area. The trend in Silver for the short term remains up, but we must be careful as the downward trend could resume soon. TRADING2DAY subscribers receive real time analysis on Silver as soon as I see good opportunity to trade for myself. Up to now, I have made 10 trades in Silver with 1000$ maximum margin and made a profit of 1330$. If you take into account the other trades I also made in Copper and Gold…the total profit is 6414$.
You can always check the progress of my trades by downloading the excel file from my PREMIUM SERVICES page.
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As always, thank you for taking the time to catch up on my thinking.