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:
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.
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.
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.
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