Silver Trading Update for June Current Situation
The initial short position entry at $31.24 has not been triggered as the price has evaded the order thus far. Instead of chasing forced entries, a more disciplined approach involves waiting for the price to come to us. Based on the latest market movements and technical analysis, two updated trading plans have been mapped out to capitalize on potential pullbacks in silver.
Trading Plan A
Scenario: Price reaches the first entry level.
Entry: Sell at $30.52742
Stop Loss: $30.93491 + Spread
Take Profit: $26.82082
This plan aligns with the higher time frame structure and anticipates a pullback to a daily demand level.
Trading Plan B
Scenario: Price reaches the second entry level.
Entry: Sell at $31.25125
Stop Loss: $31.80 + Spread
Take Profit: $26.82082
This plan provides an alternative entry level at a higher price point, offering a favorable risk-to-reward ratio if the market moves higher before reversing.
Waiting for Confirmation 🕰️
Patience is key in trading. By waiting for the price to reach our mapped-out levels, we avoid the pitfalls of chasing the market and ensure we enter trades with a higher probability of success. Both trading plans are designed to take advantage of the expected pullback based on seasonality, COT index insights, and technical signals.
Key Factors to Watch
Seasonality: June's historically weak performance for silver.
COT Index: Bearish positioning with a 1-year rolling score of 3.8% and a 3-year score of 2.3%.
Technical Signals: Higher time frame break of structure, buy-side liquidity taken, and H4 imbalances.
Conclusion 🧩
By sticking to our updated trading plans and waiting for the price to come to our predefined levels, we maintain a disciplined approach that increases our chances of success. The bearish sentiment from smart money, combined with seasonal weakness and technical indicators, supports our short position strategy. Stay patient, watch for the key levels, and be ready to execute the trades when the market presents the opportunity.
🚀 Happy trading and may the markets be in your favor!