Silver, in its 2-hour chart, reveals its price consolidation as a triangle formation after the rally developed by the precious metal that started from its July 2009 bottom.
According to chartist analysis, the triangle pattern is a consolidation formation, which, usually, is followed by the continuation of the previous upward movement. In this case, that move began on March 18th, 2020, when the price bottomed to $11.641 per ounce. Also, we can see that The RSI oscillator has moved above 60, and currently, it is close to the 80 level. This context makes us recognize that the short-term bias remains in the bullish side.
The bullish breakout above $14.62 per ounce, could boost the precious metal to $15.81 as a potential first target. If Silver extends its gains, the price could advance toward $15.81, and even climb until $16.47 per ounce.
The level that invalidates our bullish continuation scenario locates at $13.62 per ounce.
Trading Plan Summary
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Entry Level: $14.62
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Protective Stop: $13.62
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1st Profit Target: $15.15
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2nd Profit Target: $15.81
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3rd Profit Target: $16.47
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
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