Silver is reaching a strong resistance zone of 25.50-26 and a critical one for an extension higher. After a bounce from 25.50, we have a strong upside month reaching the critical resistance zone mentioned. Breaking above or rejection will determine a future direction for Silver. If we get a confirmed break above 26 and it sustains higher we can see an extension to 30. A rejection will leave the consolidation swing lower to 22 as a possibility.
The Weekly Silver chart reveals the rising price action driving it to test 26 upside resistance. A break above it is required to confirm the immediate upside extension in the third medium-term wave continuation higher, and we are seeing an ongoing test of it. It is advisable to position yourself in just one trade direction and not to try to catch every swing. If we get a break below 25 again this will be a swing short trade opportunity and we need to wait for a proper price action upside break confirmation for the long trade.
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“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.”Mark Douglas
How to trade this?
It is a fact that a strong upside resistance for Q4 2023 is 26. If we get a confirmed break here we could see a strong upside continuation and a test of 30. Near-term, long-trade entries have a higher probability of success but for the conservative traders upon a break above 26. Short trade entries are possible as well but only on a reversal below 23.80.
TRADE SILVER WITH A CHALLENGE ACCOUNT AND GET FUNDED