Silver Daily Chart: Caught Again Just Right
You will notice at the right green arrow, that on the day of entry, April 1st, the daily range was very small. That promises a range break in one of the consecutive days as a first edge. You will also be able to make out that on the prior days a supply and demand zone was created (see the yellow line). This provided for a tight stop. Another hint, that the market gave away, was the fact that three days prior a similar situation was presented. The break to the downside never gained momentum though. It stopped dead in its tracks slightly below $14.
“Luckily” prices moved quickly upwards right after our entry on the following day. We booked profits by exiting half of our position based on our quad exit strategy. Even more importantly, with this exit we erased the risk.
Silver Daily Chart: In The Making…
The market has moved according to our plan choosing scenario number two. At point A we did not have an entry since other required edges, besides a conducive entry zone, were not present. At the time of writing this chart book a double bottom (yellow horizontal line) is forming which might provide for another long entry soon to come. It will depend on how price is acting in the green marked zone.
Silver Weekly Chart: Resistance Ahead
The interesting part will be how prices will be acting within the red resistance zone. Should we penetrate the US$16+ zone it can be expected that what was resistance will become support. That would be ideal. The higher likelihood is that we will see a temporary decline. That would allow for a possibly low risk reentry. Nevertheless, we are positioned from our April 1st reentry opportunity. A great protection in case greed should prevail.
Silver Monthly Chart: Why So Aggressive?
The monthly chart supports the reason of why we are so aggressively trying to build a core long term position. Markets have a tendency of repeating cycles. After the crash of 2008 with the FED adding to their balance sheet, silver prices quintupled. We are again presented right now with an asymmetrical bet and find it worthwhile to put our money towards an outcome that can see a staggering increase in silver prices.
Caught again just right
As a market speculator one needs to be constantly on ones toes. As much as monthly, weekly and daily planing of possible scenarios and outcomes is vital, there is never time to not pay attention. Opportunities are nearly endless in the market and as such if they fall within the low risk category of one of your systems it is mandatory to partake.
A random choosing of emotional based market participation however would lead to a negative outcome. Focus, diligence and an alertness of market and price behavior is vital. It allows for catching moves just right and creating consistent results.
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