The silver market is getting a considerable bustling look at this time and the analysis is being constantly updated during the business hours of the market. If you’re also thinking of creating a position in silver, then there’s a lot of convulsions to the existing levels
Risk Diagnosis:
The biggest risk is that this fast can be just a holiday (counter-trend rally) if you look at the market’s existing framework. Silver is hit by a strong resistance area between its large downtrend, from which the risk of starting a re-heavy decline has been made. Therefore, the risk for those who have long positioned on the existing basis is significantly higher
Market Structure:
IF YOU LOOK AT THE FAST-INDICATING FACTORS, MCD (MACD) HAS FOUND A BULLISH CROSSOVER VIEW AT A PRICE OF 52.75 DOLLARS. ALSO, THE SUPERTREND ON $50.01 HAS NOW CHANGED IN SHOPPING SUPPORT, AND THE PRICE OF $52.75 IS INDICATING A CORRECTION IN SHORT TERM BY EXITING OVER 20 DAYS OF MOVING AVERAGE (50.79 DOLLARS)
BUT THE SECOND ASPECT OF THE COIN IS POINTING CLEAN TO THE SLOWDOWN. THE CURRENT EXPRESSION OF THE $52.75 IS TRAPPED WITHIN THE ICHIMOKU CLOUD ($51.38 TO 53.39) AND THE TRAPPED RESISTANCE FROM THE UPPER PART OF THE CLOUD. AT THE SAME TIME, THE 200-DAY MOVING AVERAGE IS AT $59.66, WHICH MEANS THE LONG-TERM BIG TREND IS STILL COMPLETELY DOWNWARD. VWAP IS ALSO WORKING IMMEDIATELY BLOCKAGE ON $52.83. THE SLOWDOWN WILL BE MISPLACED ONLY WHEN IT COMES TO $53.40 IN SUCH A WAY, THE EXPECTATION OF $50.00 IS OVER
Patterns & Levels:
A Bare Flag (Bear Flag) pattern is seen around 52.75 dollars on the chart, which has completed about 70 per cent. Speaking of the Fibonacci Levels, a 50 per cent retracement on a high of $58.17 and a low of $48.62, while the extension of 127.2 per cent on the bottom is at $47.30. Doji is also a candlestick on a recent level of $52.75, which clearly shows that both buyers and sellers have in Assamese. The trendline has a once-tested support on the bottom of $50.01 and has a strong resistance over $53.40
Risk Metrics:
ATR (ATR) MEASURING VOLATILITY IN THE MARKET IS CURRENTLY RUNNING AROUND 0.92 I.E. 1.74 PER CENT. THE EXPRESSION IS JUST 0.26 PER CENT FROM 50 DAYS OF MOVING AVERAGE. HOWEVER, RECENTLY WHEN SILVER HAD TOUCHED THE LOWER LEVEL OF $48.62, THE BULLISH DIVERGENCE WAS FOUND IN RSI (RSI). BUT THE CONCERN IS THAT TRADING VOLUME IS CONSTANTLY DECREASING AT THE CURRENT RATE OF 52.75 DOLLARS, WHICH IS A SIGN OF BULLYING
Zones:
Three main zones are coming up under the strategy for traders. Long i.e. the secure zone of shopping is formed between $49.50 to $50.50, where Supertrend has strong support. While short, the best of the selling is from 52.80 to 53.40 dollars, where the top part of the Vwap, 50 SMA, Ichimoku Cloud and 50 per cent of the Fibonachi level is the Kada Jamwara. Also the scope of $50.50 to 52.80 is the No-Trade Zone, as the market can remain quite rugged and directionless
Scenario Playbook:
In case of a slowdown, traders who are aggressive can make short positions on 52.75 dollars by looking at Doji Candle. While traders running convictions can wait for a close at the level of $51.80 i.e. below 20 SMA of 5 hour candle. The stop loss in this trade must be placed at $ 54.13. The first target on the bottom will be 50.00 dollars (supertrend support), the second target will be $ 48.62 (Halia Low), and the third target will be $ 47.30. This setup has a moderate level of trust and get the stop loss on cost once the first target is met. Considering that short trades will be neutralized immediately if the expression crosses the cloud or 50 SMA
For a bullish setup on the other hand, aggressive traders can take entry on a $53.50 off on the Ichimoku cloud of 5 hour candle, while secure entry will be made at $54.60 after 61.8 per cent of the fibonachi crosses. The stop loss for this should be fixed at $52.12. The first target on the top will be $ 56.30, the second $ 58.15 and the third big target will be $ 59.66 (200 SMA). While the trust in this bullish trade is quite low, definitely confirm the volume at the time of breakout
Dashboard:
Understand in short, the Bare Flag pattern is 70 per cent ready and a tight resistance of 50 per cent Fibonacci and Cloud Top is made on $53.39. The recent doji candle is showing the status of the indecision. This time, the most accurate trade sits short between 52.80 to 53.40 dollars, as the expression between the big downtrend is battling on resistance. Traders should be especially careful with a bull trap at a level of $53.40
Conclusions for Silver Traders:
The silver is still trapped in the round of the big slowdown and the recent boom is only a temporary recovery feeling. It will be wise to avoid new long purchases as long as the expression doesn’t stick firmly above 53.40 dollars. Finding a chance of selling in resistance zones and keeping a look at the level of $50.00 with strict stop loss can prove to be the safest strategy in the existing market