The following information is a guideline (trading plan) and should not be treated as financial advice. Not advice but banter and active in sharing trade ideas via twitter @sugardaddyFED. You can also follow us via TradingView.com for the latest charts update.
Break below the wedge, we could target 1040.60
Only a break above 1110 will we see a brief period of short covering to fill gap to 1130
Rallies to 20 ma will act as resistance and sellers should appear
Resistance now at 1122 1138 and 1154 so watch for the 20 MA to add the extra confirmation to short
Dollar dependant and US employment numbers could be the catalyst for a directional move
A potential double bottom in the making at 14.37 levels and the daily RSI has a bullish divergence
With the dollar at resistance, here is an opportunity for Silver to mount higher prices
A break and close above the 20 ma will give us the signal to take a long position
The balance has shifted in favour for bargain hunters to build short term long exposure
We cannot rule out another fake high (just like the previous 4 within the downward channel)
Daily RSI is showing sign of divergence but relief rally are selling opportunities unless we close and break above 20 ma
With Automakers concerned about the Chinese market baked in-platinum prices should recover in the short term. Technically, it is very oversold and the current price action suggest a potential double bottom with a bullish diverging daily RSI. The dollar index is into resistance as well which could help relieve further sell off in the commodity sector. Is this the floor that Platinum is seeking for a relief buying to enter? Much would depend on the global demand and economic recovery to stabilise the commodity sector.
At the rate of selling, we are open to test 578.8 levels as a potential area for a rebound. Consider taking a long position with a tight stop.