The 200DMA and the 50DMA have been taken out by the looks of this http://stockcharts.com/freecharts/gallery.html?$SILVER
Have closed all my longs... do not like the feel of it ATM... will look for direction before opening positions again. Hoping for a pull back to $30 and bounce off and if that happens I will pile on the longs again
Good move thatguy, it is 50/50 now until it stabilizes above the EMA, and imho we really need more volume to come in to confirm this upside break-out. How the weekly candle closes is really important.
I've just updated the long term chart again for both the silver and gold chart after this weeks action. See post #2 for the link to the file. Coincidentally we are sitting on the 1 year exponential moving average right now in silver, which looks like its just flat-lined.
No mans land Well we find our selves at the start of another week and for me as a new trader I am a bit perplexed as to where we are going. Keep looking it over and coming up with a no mans land situation. @ $30 i'm long, @ 32.66 i'm short but here?? What are the thoughts out there? Personally I am sitting it out to see how Monday goes and if it makes higher then $30.82
Same as you thatguy. There is no low-risk trade setup for me ATM. No clear trade entry signals. It is wait and see what forms next. Recent large trading ranges (volatility) has my strategy waiting on the sidelines for more certainty. But that is fine - only need a few trades per year like last week to make it more than worthwhile. It is both prudent and profitable to wait for high probability setups.
I too shall be awaiting a confirmation this week. Apart from waiting for more volume coming into Silver trades and whether it stabilizes above 200 EMA, two other things I'll watch out for this week, one technical, one fundamental: 1) USD Index : it has just touched the support of its multi-months upward channel and it will definitely have a bearing on metal prices in USD. Should it continue to respect the channel, it will exert downward pressure on Silver price. 2) Friday's Bernanke's Jackson Hole announcement i.e. dovish or hawkish for QE3. No denying that this was one major event back in QE1 when it triggered a major bull trend in silver.
The euphoria continues! We have touched $31 folks. This looks like a major case of buying the rumour for the news this Friday..
It is trying to settle above the 200 DMA. So far it looks to be able to do that. However there is a shooting star formed on the daily and if today ends with a red candle, it will be a bearish reversal signal. Trading volume remains low, while the USD Index has been rebounding upwards from its support trendline.
It would be unusual for price not to pull back somewhat, after such a quick run up. 14 day RSI is currently indicating silver is the most overbought it has been since last year's run up to $50. I expect a retreat of some kind.
Looking out for it to break the $31.15 ish. If it can manage this, I feel we will have a bend in the end for a new trend my friends. Though price is sitting outside top bollinger band, so its a bit overheated/overbought right now....... But' holding there quite nicely! Lets see what US central bank data has installed for us Hhhmmmm Soul is eying the breakout.....Stacking, stacking, stacking them high. puff, puff
30c trading range at the moment. Think it will stay that way until QE news on Friday? I wonder if buying and selling PMs would be considered insider trading for Ben Bernanke?
A new perspective viewing the technical setup of Silver/AUD shown below: 1. It has punctured the 200 DMA and has been settling above it well for a few days now. The 200 DMA line is currently at AUD$29.36. 2. It has a resistance of a larger pennant to puncture through right above current price currently at AUD$30.15. My expectation is that Friday's Jackson Hole event will generate enough momentum to break through one of these.
