Silver is sliding sharply. A break below 33.00 was a signal that recent correction may be over. The 4H RSI also dipped below 30 establishing bearish momentum. If there is a pullback, the 33.00 should be anticipated as resistance for confirmation of bearish outlook at least in the short-term.
The bearish outlook in the short-term has support pivots near 28.50, then again near 26.10. The daily chart also shows a bearish stance as the market trades under the 200-day simple moving average. After the RSI tagged 30, it failed to push back above 60, reflecting maintenance of the bearish momentum. If it is pushed back below 40, a return of bearish momentum is seen, and then confirmed if it tags 30 again.
In this bearish scenario, a swing projection (using the decline from near 44.00 2011 high, to the consolidation lows near28.50 instead of using the long tail seen in the hammer on 9/26), pivoted from consolidation high near 35.50, targets 20.00.
bear-trap: The consolidation was in an ABC manner, but there is still chance that consolidation is not over, and that the current bearish price action is only a dip before further consolidation. Considering this, the 20.00 target should be held off, and limited to 28.50 and most aggressively 26.10 for now. A break below 26.00 then adds impetus to the bearishcontinuation scenario.
Happy Trades!!
No comments:
Post a Comment