SILVER: Three days breakout traders long in the market
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Silver, a market that I don't typically trade that much, but sometimes it setups perfectly for interesting trades. Currently this template can lead to a strong short move if reacts how I could expect.
Before going deeper inside the analysis, as always, this is not a forecast, guessing the direction is pretty much 50/50, especially with the trading instruments we have. What I do and my "forecasting", is about the setup I'm interested in, if setup correctly.
"Chasing market movements and position yourself in a market that is potentially going to explode, are two completely different things", hope it makes sense!
Silver it's may be building a great pump and dump scenario, which can fail during the major red news today, 9:45am NYT USD PMI, or during the upcoming week, but let's see the logic behind.
Previous week, the last Tuesday placed the low, Friday placed the high, weekly and monthly level, creating as well a "box" where I'm interested to see the behaviour of price once will reach the extreme.
Monday was pretty much a narrow range, nothing special really happened, a part for triggering short breakout traders in the market.
Tuesday, Wednesday and Thursday the market proceeded breaking higher and higher, triggering breakout long traders in the market for 3 days in a row. Apparently we have still bullish strength, but don't forget that we are still inside a monthly "box".
Today, I would say the market is in "narrow range" as well, but it's a classic situation when major red news are on schedule, however, a great bulk of volume looks like be trapped up high.
Thesis...
My main thesis is a short move, not necessarily today, but understand that major red news PMI can drastically be volatile and complete the move (in this scenario I may won't have a good fill to join this short)
As well, what I could expect, is the market pumping back up into the current monthly high, failing the breakout and starting the bearish backside process during the upcoming days, eventually reinforcing the thesis with a first red day signal.
I will definitely be following and keep this market in watchlist.
But what about a bullish move?
The only bullish setup I'm willing to take, is a scalp long back into the monthly high, if a buy low setup can be identified, targeting at maximum that level, with no huge size considering I would be buying almost into the high, but still a scalp, well managed, can be a lucrative opportunity.
During the NY session and upcoming days I will be updating this post, so don't miss it!
Gianni
Silver, a market that I don't typically trade that much, but sometimes it setups perfectly for interesting trades. Currently this template can lead to a strong short move if reacts how I could expect.
Before going deeper inside the analysis, as always, this is not a forecast, guessing the direction is pretty much 50/50, especially with the trading instruments we have. What I do and my "forecasting", is about the setup I'm interested in, if setup correctly.
"Chasing market movements and position yourself in a market that is potentially going to explode, are two completely different things", hope it makes sense!
Silver it's may be building a great pump and dump scenario, which can fail during the major red news today, 9:45am NYT USD PMI, or during the upcoming week, but let's see the logic behind.
Previous week, the last Tuesday placed the low, Friday placed the high, weekly and monthly level, creating as well a "box" where I'm interested to see the behaviour of price once will reach the extreme.
Monday was pretty much a narrow range, nothing special really happened, a part for triggering short breakout traders in the market.
Tuesday, Wednesday and Thursday the market proceeded breaking higher and higher, triggering breakout long traders in the market for 3 days in a row. Apparently we have still bullish strength, but don't forget that we are still inside a monthly "box".
Today, I would say the market is in "narrow range" as well, but it's a classic situation when major red news are on schedule, however, a great bulk of volume looks like be trapped up high.
Thesis...
My main thesis is a short move, not necessarily today, but understand that major red news PMI can drastically be volatile and complete the move (in this scenario I may won't have a good fill to join this short)
As well, what I could expect, is the market pumping back up into the current monthly high, failing the breakout and starting the bearish backside process during the upcoming days, eventually reinforcing the thesis with a first red day signal.
I will definitely be following and keep this market in watchlist.
But what about a bullish move?
The only bullish setup I'm willing to take, is a scalp long back into the monthly high, if a buy low setup can be identified, targeting at maximum that level, with no huge size considering I would be buying almost into the high, but still a scalp, well managed, can be a lucrative opportunity.
During the NY session and upcoming days I will be updating this post, so don't miss it!
Gianni
Note
Today, Monday, I'm not really interested in how the price is behaving, I will keep it on my watchlist, but today I strongly believe in better markets!
Note
Day 3 shorts in the market, blowing off in the direction of the dump.
I actually haven't got any good entry, but nice template
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.