Silver breaks Resistance line shows Sign of Strength – Trading Journal
Yesterday, I went long Silver at 2994 after the price retraced after breaking a resistance line. You can see that the price had popped up past this line and found resistance at the 3000 price area. You always find that there is resistance around whole number values.
When the price fell from 3000 and then rallied, I saw the opportunity to go long.. I didn’t wait for the price to break 3000 as I saw quite a lot of strength in the price action. However, as you can see the price did stall for a bit longer than I would have liked and fell back towards the previous swing low at 2980… (there is a gap in the price charts for some reason here). The next swing low was a higher low which I guess is what then fuelled the rally upwards (remember people will go long if they see a confirmation uptrend which is a series of higher highs and higher lows).
My target was just below the previous swing high of 3060. I took 3050 as my target.. resistance likes the 50 numbers. This got taken out this morning, retraced and looks like it will go higher. However, I’m happy with my 56 points!
