Recently we have written about silver’s trend reversal sign, with previously highlighted strong buy opportunity.
If you trade with CFD`s, Options, Futures, or ETF`s with proper risk management, we do know that your trades were successful. Congrats.
Current price movements in silver and technical formations can lead us to a new trade direction, so let us read a chart and see what can be done.
The first thing to notice on a daily chart is the “Gold Cross.” This technical formation has a characteristic of a strong buy signal and is widely used by traders who make their trades by using technical analysis.
Secondly, MA200 and Fibonacci 38.2 level confirmed $15.0 as a significant support level. Note that the same price can be tested in the future again and will use us as a breaking point.
On H1 time frame silver price have movements from Fibonacci 50.0 level and rate $15.27.
RSI is in the bullish area, with a value between 57 and 67.
Putting limit orders near Fibonacci 50.0 level and reed line can be one option to trade. Second, it can be to watch whether the price will break $15.27.
With a weekly time frame, we have a more clear picture.
Here we can see that RSI is slightly above 50 level, which can be a signal to hold, while Fibonacci 38.2 level has almost the same value as our resistance level on H1.
As previously said, limit orders are one way to trade. The second choice is to wait and see whether the price will break $15.27. If this is the case potential target can be $15.52.
If not, the $15 area can be tested again.
Source, MT5
