Trade of the week - Silver

/ Blog / By Alex

Trade of the week – A silver test of the long-term support confluence

Our trade of the week is Silver

We can see that the instrument is still within a strong long-term downtrend Andrews Pitchfork channel and below the median line now. It is testing the horizontal resistance and 16 years low 1150 level. This level needs to hold to avoid the downside breakout to a key long-term all time 980 level low.

Silver Pitchfork monthly chart — The silver monthly chart reveals a test of the 16 years low

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On a daily chart, we can see that the pair has formed a swing channel and we can see a bounce formation from 1200 level. Based on this you can place a long trade entry with a stop loss below the 1180 level and targeting 1360 level at least. The entry should be at the beginning of the next week. In case we have a daily close below 1170 this will be a short trade opportunity, so if you will be stopped change trade direction. Our trading system is indicating a potential 140 points of profit.

Silver trading signal — Silver is bouncing from the 1200 support level. Target higher

We have used the combination of the top-down trading analysis to get these key levels explained in the charts.

Happy trading! (click on the chart to enlarge it)

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