Jan 21st 2019, Silver Chartbook

A Silver breath

Last week’s silver chart-book anticipated a small retracement.

It manifested and friday´s price action was typical for pre-holiday trading. US markets having a bank holiday, Martin Luther King Jr. Day. This typically causes large players to protect their positions due to possible liquidity issues.

This was especially likely with the supply/demand resistance zone overhead after a substantial move of prior weeks.

The $ 15.30 price zone on the daily chart is providing temporary support for a possible low risk reload entry:

Silver in US Dollar, daily chart as of January 21st 2019.

Silver in US Dollar, daily chart as of January 21st 2019.

Reload, assuming you are already exposed to Silver in a long position that already has taken some profits. This is not an ideal spot to initiate a Silver long position on it’s own.

The 60 min chart shows further evidence of a fairly low risk spot to add to your directional Silver exposure.

Silver in US Dollar, 60 min chart as of January 21st 2019.

Silver in US Dollar, 60 min chart as of January 21st 2019.

As all markets are being related, we found confluence in the EURO as well as in the NASDAQ 100 futures for a possible breather here. This allows for a contrarian stand of this short term short leg in the smaller time frames of Silver to aggressively step in for a quick breath play.

This being said, we aim to take risk out of this trade aggressively in financing this reload after only a quick movement in our favor. After that we plan to trail stops mutually aggressive.

EURO in US Dollar, daily chart as of January 21st 2019.

EURO in US Dollar, daily chart as of January 21st 2019.

Our goal here is to possibly end up with a small additional long exposure size in Silver. This can then be hip pocketed to our original longer term holdings in Silver for additional profits.

NASDAQ 100 Futures daily chart as of January 21st 2019.

NASDAQ 100 Futures daily chart as of January 21st 2019.

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By | 2019-02-02T14:51:49+00:00 January 21st, 2019|Tags: , , , , , , |0 Comments

About the Author:

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.

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