#SILVER A DEEP DIVE; TARGETS AND TRADE LEVELS.
I have just posted a long article on #gold (link at the bottom) and here is my equivalent on silver. BUT I won't bore you with the historical stats on previous drops and rationale as its the same as gold.
Silver ran up 235% and is now back 44% form the highs. Long story short, I shorted from above $100 and said then that $54 was my target (TRANSPARENCY: I closed that short ages ago and have had a couple of others including a new short on Thursday which I'm still in as I am a short term trader).
-VOLATILITY AND CONTEXT: Silver is more volatile than gold so moves up and pull backs tend to be bigger. It is an industrial metal more than a store of value/safety so more closely linked to the stockmarket and economy.
- There is a lot of liquidity to take just below 64.65 so that is the next downside target after breaking the orange trend line (nit confirmed below the orange line yet though) and I will close my current short at 64.65 as it should get a bounce.
- 64.65 is also perfectly the fib 0.618 level which adds more strength. This is a good pull back so I will consider this is a level where we could get a bottom.
- BUT I see lower in gold and the stockmarket so think silver struggles to hold that level.
- $54 is the next support level and that along with the 0.75 retrace at 52.30 is my base case and where I start buying big.
#metals #trading $SLV $SL $SILVER