Silver has completed a three-candle evening star pattern following a sharp run higher, warning of bearish reversal risk. However, before acting on the signal, it would be preferable to see the price push below $56.50 before considering short setups, providing a level where a stop could be placed above it for protection against reversal.
Downside targets to consider include $54.48, $52.50 or August uptrend support/50DMA, the latter found today at $50.48.
RSI (14) has broken its uptrend and is curling over but remains above the neutral 50 level, indicting waning upside strength. MACD provides a similar message, beginning to curl over towards the signal line while remaining firmly in positive territory. It’s not a bearish picture being provided by the oscillators, but it does provide a reason for bulls to be cautious around these levels.
While the option is there to act immediately on the bearish signal and initiate shorts at current levels, given the bullish frenzy seen in silver over recent months, risk management looms as particularly important for anyone considering bearish setups.
Good luck!
DS
Downside targets to consider include $54.48, $52.50 or August uptrend support/50DMA, the latter found today at $50.48.
RSI (14) has broken its uptrend and is curling over but remains above the neutral 50 level, indicting waning upside strength. MACD provides a similar message, beginning to curl over towards the signal line while remaining firmly in positive territory. It’s not a bearish picture being provided by the oscillators, but it does provide a reason for bulls to be cautious around these levels.
While the option is there to act immediately on the bearish signal and initiate shorts at current levels, given the bullish frenzy seen in silver over recent months, risk management looms as particularly important for anyone considering bearish setups.
Good luck!
DS
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.