Silver – on the dot
Last week we identified the turning point for Silver by the day (chart-book from Jan 21st).
Here is the chart from last week.
Entry opportunity for the reload called on the dot:
And this is the price action of Silver versus the US Dollar since then:
3 percent move up within a week:
After a thrust up of nearly 50 cents into a resistance zone, it is now advised to take partial profits. No matter what time frame you are exposed in (besides long term monthly or annual holdings), this zone near 15.75 USD warrants most likely for a temporary pause.
Especially since the risk reward ratio is limited, taking some gains off the table is a fair move money management wise. This can be seen on the weekly chart here where the light blue line represents the next distribution zone:
Looking at the typical behavior at supply/demand zones, marked as red squares here on this daily chart, it illustrates how Silver behaves near support/resistance. The yellow wicks of the candle stick represent typical overshoots and as such have also limit the risk/reward ratio. As such target exits for partial profit taking are prudent.
How Silver trades:
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