I imagine that all silver traders have been aware that the precious metals market has been shamelessly manipulated by thieves in suits for many years/decades. What may be less well-known is that there is a rumor that one of the biggest culprits of them all, JP Morgan, has not only successfully closed out all their shorts, but has been building a long portfolio for some time. If that rumor is true, my guess is that other big trading houses have been doing the same.
I have been looking in on the silver chart from time to time for the past few months waiting to see when/if there appeared to be a long trade on the horizon. And it appears that there now might be.
This is a relatively long-term setup from the low in late 2015. We do not yet have a buy signal, as we do not yet see a close outside the arc pair. But it seems that the 2nd arc of the pair will be met soon. I have a feeling that a close above the arc might signal the beginning of a good long trade. The highlighted area in yellow indicates that longer-term resistance is seen at the $24-26 area.
Lets look at a slightly short-term setup on the same chart:
Here we can see that we are literally one day away from a buy signal on this setup, if we get a close at or above today’s high. I have put an arrow on the chart showing where that $25 resistance on the longer-term chart is seen on this setup. Here it is at the 3rd arc pair.
Seen below, the ‘0 line’ of an Andrews Pitchfork intersects the 3rd arc at just under $24 early in July. As a result, we can safely surmise that there will be strong resistance in that area, if indeed a rally gets started in this market in the near future.
If it should be that we get a close above this level, then the fireworks will likely begin for real. This market has been perverted for so very long that if it ever gets a chance to go where it wants to go, a new ATH will almost certainly be in the cards. But lets not get ahead of ourselves. Let’s see if we get a buy signal on the chart, and if so, let’s position ourselves to ride a wave to $24…
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.