Dear readers,
Price of silver is currently feeling the heat as the first wave of sell-off begans.
If you are on the sidelines now and waiting to go long, i would suggest that you wait for a bounce on the daily charts at the support indicated on the chart above. However, you would have to be very flexible here if you are going long on Silver as this could be a top in the making. Note the doji on the weekly charts.
If you are looking to go short on silver and are currently on the sidelines, i would suggest that you wait and see if Silver would bounce off support and re-test its near term high of $48.35. Any rally and failure to hit $48.35 would be a double top signal.
Where are the market players?
At this point in time, trend traders would be on the sidelines and waiting for a break of the neckline before igniting any short postitions while fade traders (traders who buy or sell reversal) would have already ignited their short trades at $47.50 or waiting to enter long at the bounce at support or enter short at any subsequent failed rally to test the near term high of $48.35 to execute their trades.
Fade traders have the highest reward ratio than trend traders but of course the risk are higher. Catching the top dollar pays you well but it could be very expensive if it is not executed properly.
For me, i'll be on the side lines stalking silver to see how it would react on its support and its next attempt rally, if any.
Price of silver is currently feeling the heat as the first wave of sell-off begans.
If you are on the sidelines now and waiting to go long, i would suggest that you wait for a bounce on the daily charts at the support indicated on the chart above. However, you would have to be very flexible here if you are going long on Silver as this could be a top in the making. Note the doji on the weekly charts.
If you are looking to go short on silver and are currently on the sidelines, i would suggest that you wait and see if Silver would bounce off support and re-test its near term high of $48.35. Any rally and failure to hit $48.35 would be a double top signal.
Where are the market players?
At this point in time, trend traders would be on the sidelines and waiting for a break of the neckline before igniting any short postitions while fade traders (traders who buy or sell reversal) would have already ignited their short trades at $47.50 or waiting to enter long at the bounce at support or enter short at any subsequent failed rally to test the near term high of $48.35 to execute their trades.
Fade traders have the highest reward ratio than trend traders but of course the risk are higher. Catching the top dollar pays you well but it could be very expensive if it is not executed properly.
For me, i'll be on the side lines stalking silver to see how it would react on its support and its next attempt rally, if any.
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