01/08/2017
Silver: D1
Our expectations: The silver is in a downward trend, with the price now retrace to levels of horizontal and diagonal resistance and 50% Fibonacci correction, which is failed to break. For this reason, we believe that the price will continue to develop in a downward direction.
Alternative Scenarios: If the price goes above the horizontal and diagonal resistances and stays there in several consecutive bars, it is likely to see a rise and a test of the long term (weekly) diagonal at levels of about $17.50.
Comment:
- Cost of diagonal and horizontal resistance, coinciding with 50% Fibonacci correction of the last downward wave - negative for the price.
- 50SMA under 200SMA - sword formation
- Demarker (14) rotated in an overbought zone - upward pulse end signal.
- The input options are two, risky to position short market now, or conservative after a stronger Price Action that will give us a shorter stop.
- SL: 17.175
Jr Trader Petar Milanov
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