Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Silver Bulls Pushing Back As Double Bottom Forms

Published 07/16/2015, 04:58 AM
Updated 05/14/2017, 06:45 AM
SI
-

Silver has been in a bit of a downtrend recently and has turned volatile after it broke though the previous support level. Silver now looks to form a double bottom that could see the bulls push it back to the highs seen earlier this month.

Silver Daily Chart

The short term down trend in Silver looks to be under threat as a double bottom is forming on the above H4 chart. The long wicks indicate the bulls pushing back against the intense selling with the price being pushed back above the top if the large bearish engulfing candle. From there the bears took their cues and the selling began again.

The Stochastic oscillator is showing some bullish divergence that supports the formation of the double bottom. The Stoch hit a low in early June and the next two lower lows in the price actually created higher lows in the Stoch. The low at the current candle has a much higher Stoch reading indicating the momentum has shifted towards the bullish side.

In a push higher, watch for the neckline to act as heavy resistance around the 15.737 mark. If this is breached, we are likely to see an initial push up, and possibly a pull back to it where it will act as support. This will be a cue that the double bottom has formed and we can expect a solid rejection higher off the support. Further resistance on the way up will be found at 16.158 and 16.685 with the 100 H4 MA acting as dynamic resistance.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.