By Mike Cichocki – TradersBase.com
Is Silver a sinking treasure or a screaming buy? Below is my analysis of the current situation Silver folks are facing.
$28-30 is support, meaning a prior price range where demand came in and purchased.
$34-35 is resistance, meaning a prior price range where supply cleared out and liquidated.
The macro trend depends on your style & how you measure. If you use swing levels silver is still up-trending as long as $28ish holds. If you focus on momentum however, silver has stalled and actually violated the slope of the up-trend. The mid term and short term have undeniably been heading down, regardless of how you measure.
The aggressive play is to enter at support despite the current down trend, this is a high risk entry.
A less aggressive play is to wait for signs that support is again being defended, candle formations showing price contraction for example.
The least aggressive play is to wait for an uptrend to emerge in the short or mid term.
My best advice is to gauge your appetite for risk and set a plan you can live with. Execute the plan without emotional interference, relish success & learn from any setbacks!