There was a breakout of a small "Symmetrical Triangle" on the daily chart in Silver that was identified previously on the blog. At the time I felt that the apex of the triangle should offer initial support and it has held so far. I am still cautiously bullish even though the near term patterns are showing increasing demand with each selloff. Why am I cautious? Because of the structure of the bigger picture.
I would trail a stop should silver breakout out of the new upper trendline of the new triangle to below its nearest reaction point of the lower trendline to limit the risk.
The left hand side chart is a daily chart zoomed in for 3 months. These patterns are "miniscule" compared to the right hand side dominant "Descending Triangle" pattern on the daily/weekly chart. The weekly pattern should always be respected. And respect is handled with correct "money management" and "position sizing" principles.
(Click on chart to expand)
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