From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with H1 or lower.
Silver market since May 2011 moves south. As a result of these drops, the value of this raw material fell from $49.00 in April 2011 down to $14.00 in December 2015. Close to upward trend line has emerged demand response.
Looking at weekly chart, we will notice that market is approaching an extremely important resistance zone around 18.57, which in past was both support and resistance. Numerous tests and multiple rejections of this level, both from the top and from the bottom, can be followed by emergence of a supply response and at least a downward correction.
On the daily chart we see that although the market has not yet reached precisely the area around it, last week we saw a strong supply reaction. It is worth noting that this situation is quite similar to what happened at the end of February. As a result of yesterday’s upswing, the market was again in the vicinity of this local resistance. If this time the level is defeated, we could expect continuation of growth even to around 20.10.
Looking at the 4-hour chart, we notice, however, that today first supply response has already emerged.
Even better, the whole reaction represents H1 interval, although given the relatively small dynamics of declines, we expect price to test again today’s maxima in the near future.
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