Hello All,
Posting after a Long time, Little bit busy with clients.
Today Found a reason to post, a Good Long Trade ready to fly. This time it's a Bullion "SILVER"
I don't know if you guys trade Silver or Not, Just Check your Brokers and Margin Requirements for Silver, Do not Enter if you are unaware of commodity trading and Risks associated with it.
I have always recommended the White Metal at lower levels for Investment and trading purpose. The White Metal is used in ornaments and Industrial use. Most of the consumption is for industrial use and it is a never ending process. Fundamentals are in favor of longs, but I am not going into the details, will try to keep it simple and focus of Technical Charts only.
Let's start with the charts One by One.
The Weekly Chart shows breakout from a Long Term falling trend is completed and now the Metal price is moving out of the falling trend and moving slowly in a rising trend.
Moving further to the after breakout area, we will see developments here.
This is low of the price in recent time and the price formed a chart pattern while breaking out of the falling trend. The Chart pattern is very popular and considered as most successful pattern. The Pattern is "Inverted Head and Shoulder" pattern. The Neckline of the pattern is placed around 18.20 level while the low of the Head is placed around 13.80 approx. giving a height of 440 pips from the low of the head to the neckline. The Price again break out above the trendline. The Breakout is near 18.00 level and the expected price target is around 22.40 as per the chart formation. The price target is still pending, but price can not move straight to the target and this is happening here. Let's see next chart.
As we see in this chart, The price started moving in a rising channel but reached the channel resistance and retracing back to reach the channel support. making space for further upmove. while retracing back to the channel support the price is making a "Flag and Pole" Chart Pattern, which is considered as a continuation pattern, helping continuation of the trend. The Flag is still in process and the Pole of the flag is approx 340 pips. it will result in a price target of 340 pips once the flag is completed and price breaks out.
The Flag, H&S Neckline and the channel support are placed in a close area near 18.20 zone.
Recommendation :
BUY SILVER NEAR 18-18.20 ZONE WITH A STOPLOSS OF 17.60 AND A PRICE TARGET OF 19.20 FIRST AND THERE AFTER A MOVE TO 22.20 & 25.10 IS POSSIBLE.
Risk :
Commodity Trading can be dangerous to your Investments and portfolio, Understand risks associated with commodity trading before jumping in the trade. Also understand Margin requirements from the broker. Manage Risk properly.
Disclosure :
The Adviser is a Global Market expert and Certified Investment Adviser working in Global Markets since last 8 years and having huge following. The Adviser may have vested interest while recommending the trade. He or his clients may have trading positions, investment in the recommended instrument.
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