The economic backdrop is looking increasingly positive for precious metals, and silver in particular, which has a track record of outperforming during precious metal bull markets. In addition, the metal is already trading at a steep discount to where real bond yields and the commodity complex suggest is fair value, at least based on the strong correlation over the past 20 years.
Technically SILVER is primed for another leg higher after completing a bull flag formation. The 20DMA is nearing a cross above the 50DMA which is indicative of a short term trend change, however, the mid and long term trends remain down.
Inverse Head and Shoulder neckline (24.819)
P/T 1: 0.618 fib (25.476)
P/T 2: 1.0 (26.774)
Stochastics RSI is in oversold territory, RSI holding above 50 and Momentum near neutral.
Want to see DXY stay below (94.627), a weekly close above that level could see upside potential of (97.000) on DXY which in return will put downward pressure on precious metals.
For short term trades you could trade the SLV or look towards the Sprott Funds (PSLV) for mid to long term investments.
___________________________
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✅ Follow for swing ideas, trade setups and weekly 0DTE income trades.
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💸 WHAT IS 0DTE TRADING?
The Chicago Board Options Exchange (Cboe) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Most options expire worthless and we take advantage of this by selling credit spreads to collect premium. This strategy allows us to profit if the market moves up, down or doesn't move at all. See profile to learn more!
Technically SILVER is primed for another leg higher after completing a bull flag formation. The 20DMA is nearing a cross above the 50DMA which is indicative of a short term trend change, however, the mid and long term trends remain down.
Inverse Head and Shoulder neckline (24.819)
P/T 1: 0.618 fib (25.476)
P/T 2: 1.0 (26.774)
Stochastics RSI is in oversold territory, RSI holding above 50 and Momentum near neutral.
Want to see DXY stay below (94.627), a weekly close above that level could see upside potential of (97.000) on DXY which in return will put downward pressure on precious metals.
For short term trades you could trade the SLV or look towards the Sprott Funds (PSLV) for mid to long term investments.
___________________________
✅ If you found this idea useful, hit the like button, follow & share.
✅ Follow for swing ideas, trade setups and weekly 0DTE income trades.
✅ Don't hesitate to post comments, opinions and questions.
💸 WHAT IS 0DTE TRADING?
The Chicago Board Options Exchange (Cboe) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Most options expire worthless and we take advantage of this by selling credit spreads to collect premium. This strategy allows us to profit if the market moves up, down or doesn't move at all. See profile to learn more!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.