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Silver (SI) Retesting 50% Fib Retrace of Mar-Sep Slide

Silver (SI) Retesting 50% Fib Retrace of Mar-Sep Slide

Posted December 7, 2022
Darren Chu
Tradable Patterns

Silver (SI) Retesting 50% Fib Retrace of Mar-Sep Slide

Silver (SI) is consolidating a 3rd straight day, vulnerable to a bit more healthy profittaking ahead of the weekend.  Nevertheless, SI’s brief break on Monday above the 61.8% Fib retrace of the March to September slide suggests a completion to the major bottom within the consolidation since August 2020.  Odds are elevated for a test of the May high (coinciding roughly with upchannel resistance on the daily chart) before the year end lull sets in.  Any further pullback as a result of yesterday’s break below upchannel support (on the 4hr chart) will unlikely see a slide below upchannel support (on the daily chart).  Volatility will surge Friday with the US’ core PPI and PPI, and preliminary UoM consumer sentiment.  The escalation in the Ukraine-Russia conflict deserves close monitoring.  Congratulations to paying subscribers who benefited from the Nov 2, 2022 analysis suggesting that SI was in the advanced stages of forming a major bottom.  The weekly RSI, Stochastics and MACD are rallying or consolidating recent gains, but weighed by the daily MACD which is trying to negatively cross.  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, VIX

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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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