Short Term Silver
Trader Scott’s Market Blog
As a free service, I can’t/won’t give specific trading advice. The chart below shows the shorter term view of silver futures, which is a market that I’m interested in on a trading basis. One of my favorite trades is a market that’s in a fairly clearly defined TRADING RANGE/SIDEWAYS TREND. The accompanying chart shows that the upper side/RESISTANCE is around $21 and the low end/SUPPORT is around $19.20.
I always buy into weakness. The majority of people get scared when a market is falling. They then get bearish and they’re afraid that the market is going to go below the SUPPORT area and then keep falling. That particular situation is actually one of my favorite entry points into a trade or investment. That’s because I understand/respect/believe in SUPPORT and RESISTANCE areas. So when a market “breaks a SUPPORT area”, I actually will often step up and buy (dependent upon the technical price vs. volume situation at that time). If the technical structure of that market is showing the downside pressure is abating as it trades in its’ RANGE, then a “break of SUPPORT” is a very low RISK/high PROBABILITY entry point into a market. And conversely it’s a situation when most people think it’s the worst time to enter. The great Richard Wyckoff called this particular situation a springboard entry point.