The context of the longer term weekly chart creates a bullish bias for the silver chart, I reckon . This makes a break above the resistance currently being tested on shorter term charts look like a buy set up
The longer term silver chart remains within a large descending triangle.
What interests me about the current situation is that price looks close to completing a 3 swing or ABC decline within the triangle. If this is confirmed, it would look like the classic partial pull back that often sets up for an eventual break through triangle resistance.
The fact that the fast stochastic is now heading sharply higher after breaking out of the oversold zone suggests good bullish momentum for this chart.
As you can see on the daily chart below, silver is now baulking at the resistance formed by the early January peak.
Given the bullish context of the weekly chart, a break above this resistance looks a reasonable chance of being a continuation of the early stages of a significant up trend.
Stop Entry Orders
A typical approach to entry strategy would be to buy on a break past Tuesday’s close. The stop entry (S/E) function is a useful tool for this purpose and is shown on the Tracker platform order ticket below.
The order ticket allows you to stipulate a “boundary” if you wish. This puts a limit on the maximum price paid. In this case a market order would be triggered if price rises to 31.70 but will only be filled up to whatever boundary you set (in this case 31.80). In other words you don’t have to risk being caught by gapping markets using stop entry orders
You can also set your stop loss and take profit orders when the original order is placed. These features mean busy traders don’t need to be glued to the screen monitoring orders.
I haven’t put a profit level on this ticket. If we get a set up, I’ll post a follow up discussing approaches to profit objectives.