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Silver (SI) Consolidates Just Below Key 20 Level Ahead of FOMC

Silver (SI) Consolidates Just Below Key 20 Level Ahead of FOMC

Posted November 2, 2022
Darren Chu
Tradable Patterns

Silver (SI) Consolidates Just Below Key 20 Level Ahead of FOMC

Silver (SI) is consolidating after yesterday’s near 3% bounce to the psychologically key 20 whole figure level.  SI appears to be in the advanced stages of forming a major bottom after a higher October high/low versus the September high/low.  Any weekly close above descending wedge resistance (on the weekly chart) will dramatically increase the probability of testing the October high in the week after.  SI is increasingly unlikely to retest the 2022 low by November sometime.  Watch for a bullish catalyst as early as today 815am EST following the US ADP non-farm employment change, or at 2pm after the EST FOMC/Fed Funds rate and FOMC conference, Thursday with the US ISM services PMI, and Friday with the highly anticipated US Non-Farm Payrolls (NFP).  The escalation in the Ukraine-Russia conflict deserves close monitoring.  Congratulations to readers who heeded the warning December 16, 2020 of SI’s breakout above its daily chart downchannel resistance and who benefited.  The weekly and daily RSI, Stochastics and MACD are bottomish or rallying.  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, COCOA

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Source: Interactive Brokers TWS

Sample of Today’s Top 3 Trades Available to Free Subscribers (published Apr 14, 2021

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