Monday, July 18, 2011

Daily and Weekly Silver Chart Analysis 7/18

(Chart 1 - Daily Silver)
(Chart 2 - Weekly Silver)

Silver has shown tremendous strength as of late.
The daily chart is starting to look parabolic again.
I expect some selling to occur if we get higher, into the 42-44 area.
However, as strong as this rally looks, we could rip right past it.

From a trading standpoint:
I feel good about buying dips into the 38 area. I would target 42 initially, but would keep some on for 43.75, or 45.30 if you are feeling lucky ;)

Much less confidently, I would also look to sell the 42-43.5 area if we hit it in the next 2 days.

For both of these though, I would first look for 60 min candle confirmations, (hammers/shooting star or engulfing patterns) before entering a position.

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