August's silver monthly candle completed as a pinbar. This "hammer" gets triggered as a buy signal only if the price moves ABOVE the top of the pinbar by a few cents, or around 25.50 for the December contract. Some traders may buy early by going to the lower time frames of daily or 4 hours and looking for a buy entry midpoint between the close and the bottom which would be around 23.60. (Still, the trade is only considered a buy if the price hits around 25.50!)
Please see my previous idea about what I think is an inverted head and shoulders on the silver weekly chart. A weekly close above around $26 could send silver to $34 or higher.
Sometimes silver does lead gold, so if this trade is triggered expect gold to head higher also even if it is lagging at the time.
Please see my previous idea about what I think is an inverted head and shoulders on the silver weekly chart. A weekly close above around $26 could send silver to $34 or higher.
Sometimes silver does lead gold, so if this trade is triggered expect gold to head higher also even if it is lagging at the time.
Comment:
Usually a hammer is most effective at a potential bottoming area but I think it still applies to this ranging area on the monthly chart.
Comment:
The 25.50 trigger price was never hit but silver now is in a potential bottoming area as explained in a more recent trade idea for silver.