I gave warning on a possible silver short setup on the 18th and then on the 25th I gave confirmation. I just had to go back and toot the ole horn because I got alot of flack from the silver bulls.

Silver is near that 50ma and the top of structure resistance as shown on my chart prior. Silver has shown selling pressure on the prior push and now it’s lingering showing limited buying pressure. For a trader this is a low risk short with a clear and tight stop. As I’ve said before…no bias or silver hating here…just pointing out a obvious and sound trade setup.

Silver coming into daily resistance. This has been trending so clean I’d be shocked if this zone I drew out didn’t hold. Plus the MASSIVE volume on the paper markets seems to tell me there’s a good chance of a temporary bottom there. Clean resistance, with the trend….good place to try getting short. My strategy would be to enter half at the low resistance and then scale in the other bit if it penetrates into that resistance zone. From there you have a clear stop and a good cost basis.

Good luck

While the paper markets are in breakdown mode…commod’s should bounce.
Silver looks prime for a bounce IMO. Tight stop and quite a bit of potential upside off this divergent test of the last lows, this is an excellent trade opportunity as I see it.

Remember you’re counter trend if you’re long, the 50ma has crossed below the 200ma already. Pay extra attention to the red dots as they are double backed resistance (by ma and structure). The best trades (with the trend) would be to look for rejection at those levels and get short. Those could also be used for long targets which is classic textbook support and resistance.

I LOVE this chart example for TA…it just is clean and clear. I see too many people out there trying so hard to make sense of a shitty chart when there are TONS of other plays. If the chart doesn’t hit you quickly don’t bother trying TA. If you cant see a clear line in the sand where bulls and bears will interact don’t play it cause it will be hard to gauge risk/reward ratios. Trending plays are MUCH easier to work TA with as the side winning is already evident and of high probability to continue. Choppy sideways action is often like betting on red at the roulette table IMO…unless you wait for the breakout that is. The consolidation plays do tend to be more violent and can provide quicker profit if you are patient and quick enough to enter on the break.

Good luck.

Just WOW! I wasn’t expecting that big a move that quick otherwise I’d have posted the weekly chart as well.

I would think the weekly 200ma will provide some basing here, let’s watch this unfold.

Toot Toot!
I had to toot my own horn on my 2 silver shorts (red circles) called here on TB. Targets worked out very well also.

The 200ma/structure support would have provided a safe shot at a long with a tight stop this last go round. BUT my bias was short based on how many times it had tested the $16.50 level and the USD move.