Trade Silver with Unum Capital.
To get started, email lester@unum.co.za
In the previous note on Silver, our comments were as follows:
"The overall trend for Spot Silver is bullish, with both short-term and long-term indicators pointing upwards. However, the 7-day trend shows high bullish momentum approaching overbought conditions, suggesting a potential short-term pullback. The short-term strategy is to be cautious with buying, watch for failures to hold highs, and consider shorting if the price drops below the 8-EMA. The medium-term strategy involves waiting for an overshoot or failure to hold prior session range highs before shorting back to the 8-EMA. The long-term trend remains strongly bullish, indicating continued upward momentum over the next 5 to 8 weeks."
The current price action model reading is as follows:
Summary:
For the short term (1 to 10 days), the strategy suggests that while the trend is upward, it's weakening, potentially offering both buy and sell opportunities around the 8, 21, or 50-day EMA. In the medium term (2 to 4 weeks), the strategy indicates a slowing bullish momentum, with potential buy opportunities on the 8, 21, or 50-day EMA as a rebound. Looking at the long term (5 to 8 weeks), the strategy suggests an upward trend is either in progress or beginning, but also cautions about the potential for failure to hold prior session range highs, which could create a tactical short-sell opportunity.
Previous Post: Trading Spot Silver: Analysis of Price Action
Q: What is the overall trend? A: The overall trend is bullish.
Q: What is the current 7-day trend? A: The current 7-day trend is high bullish momentum, approaching overbought.
Q: What is the current 14-day trend? A: The current 14-day trend is very bullish.
Q: Is there any opportunity for a short-term buy/long position? A: The information suggests caution with buying/long positions due to the overbought conditions and potential for failure to hold highs.
Q: Is there any opportunity for a short-term sell/short position? A: Yes, there is a potential short-term sell/short position opportunity if the attempt to hold the highs fails, and the price doesn't hold above the 8-EMA.
Q: What is the current position & trend for the short term (1 to 10 days)? A: The short-term position is a very strong move with buyers in control, but it's approaching overbought levels, suggesting potential for a pullback.
Q: What is the current position & trend for the medium term (2 to 4 weeks)? A: The medium-term position is an aggressive buying trend, but a strategy is to wait for an overshoot or failure to hold prior session range highs to short back to the 8-EMA.
Q: What is the current position & trend for the long term (5 to 8 weeks)? A: The long-term position has resumed a bull move in a strong upward trend.
The overall trend for Spot Silver is bullish, with both short-term and long-term indicators pointing upwards. However, the 7-day trend shows high bullish momentum approaching overbought conditions, suggesting a potential short-term pullback. The short-term strategy is to be cautious with buying, watch for failures to hold highs, and consider shorting if the price drops below the 8-EMA. The medium-term strategy involves waiting for an overshoot or failure to hold prior session range highs before shorting back to the 8-EMA. The long-term trend remains strongly bullish, indicating continued upward momentum over the next 5 to 8 weeks.
Lester Davids
Analyst: Unum Capital
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