Silver (SI) Retesting 50% Fib Retrace of Mar-Sep Slide
Silver (SI) Weekly/Daily/4hr
Silver (SIZ22) is consolidating a 3rd straight day, vulnerable to a bit more healthy profittaking ahead of the weekend. Nevertheless, SI’s brief break on Monday above the 61.8% Fib retrace of the March to September slide suggests a completion to the major bottom within the consolidation since August 2020 (as can be seen more easily on a monthly chart on tradingview.com). Odds are elevated for a test of the May high (coinciding roughly with upchannel resistance on the daily chart) before the year end lull sets in. Any further pullback as a result of yesterday’s break below upchannel support (on the 4hr chart) will unlikely see a slide below upchannel support (on the daily chart). Volatility will surge Friday with the US’ core PPI and PPI, and preliminary UoM consumer sentiment. The escalation in the Ukraine-Russia conflict deserves close monitoring. Congratulations to paying subscribers who benefited from the Nov 2, 2022 analysis suggesting that SI was in the advanced stages of forming a major bottom. The weekly RSI, Stochastics and MACD are rallying or consolidating recent gains, but weighed by the daily MACD which is trying to negatively cross. I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Tuesday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter). Click here for analysis on GOLD, VIX
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