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TFC Commodity Trading Forum

Re: Gold/Silver/Ronbo *PIC*
In Response To: Re: Gold/Silver/Trades ()

I'm doing great. Couldn't be much better actually. Hope you're doing the same. As far as resistance goes those that ignore it tend to leave a lot of money on the table when all is said and done. Never a good idea to ignore it. So here is a Daily chart of Dec Silver. Look back and see the dramatic plunges that would not have been easy to exit out of. Silver loves to entice, seduce and then slaughter those that have the glitter in their eyes for it. I'm sure you recall some of those times. I know guys that I don't dare mention the word Silver to or they'll take my head off. Just look at the nearly 4 months of choppy sideways price action that chops a persons trading account to pieces when trying to trade Silver. But technically with major support at 26.50 and the top of the nearly 4 month channel at $30 you have a $3.50 channel. So the breakout was over $30 and the downtrendline which projected a rally to 33.50. So far that has been achieved. Also notice the lower technicals. While being overbought doesn't guarantee a selloff immediately it is a warning. Also notice the CCI 20 which is especially good at showing divergences more than the other oscillators. See the weak negative divergence on these recent new rally back highs. Another warning. So believe in the 'moon' if you wish but if nothing else have a trailing stop in place because you know how all these Silver rallies end. And it isn't pretty. Seasonals tend to be bullish through Sept but can end at any point. So far the rally has only been since the breakout over $30 which is only 3.72 and nothing much to write home about. So perhaps there is much more ahead. I don't expect it to be straight up either. Notice last night Silver was plunging right into early this morning. So you have to ask yourself if the jobs report hadn't have been poor which suggested more QE from the feds that ignited Silver today you would have seen last night's plunge continue into today and been limit down. That is the nature of Silver. And so far all for $3.72 since the breakout. There are better fish to fry I think. The double Gold ETF:DGP broke out over $50 and is presently $56.61 and is far more reliable a trade historically. Lots of trades like that which trade much smoother and more consistently than Silver. And there are options on most of them as well if one wants extreme leverage. Good luck with the trade and hopefully you have an exit strategy that will deal with the plunge ahead.