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CFD: Ideas You Can Trade - Silver Looks Poised To Move Lower

Posted by Steven Hatzakis on Aug 4, 2014 4:29:00 PM

Silver: Support Near 18.50 Within Reach as Bearish Continuation Progressing

The medium term daily candle chart below shows the price of Silver, a metal contract for difference (CFD), trading at 20.13 around time of publication today.

The last time Silver was reviewed in the Ideas You Can Trade series, in mid-April 2014, the trend had turned bearish, then recovered on May 1st with support near the 18.50 level which enabled prices to reverse towards the high of 21.56 reached on July 10th - before reversing yet again towards current levels.

Support near 20.00 may prevent a bearish continuation, and instead enable Silver to breakout to the upside of the bearish channel (point 3 in magenta color on chart below), whereas if 20.00 is breached to the downside then 19.50 could be next, with further support below near 18.60.   

Below are examples of how to trade a bearish continuation or a bullish reversal:

1.  BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 20.35 with a Limit to take profit @ 20.71 and a stop-loss @ 20.01 Risk/Reward Summary: Limit risk = +36 points profit / (-34) Stop-loss risk = Gain to Loss ratio = 1.05

2.  BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 19.98 with a Limit to take profit @ 19.56 and a stop-loss @ 20.39 Risk/Reward Summary: Limit risk = +42 points profit / (-41) Stop-loss risk = Gain to Loss Ratio =  1.02

Medium term chart (daily candles):

silverdaily august 4 2014 note

 

Medium term chart (daily candles Zoomed out):

silverdaily august 4 2014 note zoom out

A note on CFD’s: A Contract for Difference, or CFD, is a financial contract allowing traders to potentially profit whether markets move up or down and include risk of loss. CFDs are cash-settled based on the difference in the value of an underlying asset from the time a trade is opened to the time the position is closed. A list of available CFDs that can be traded with WorldWideMarkets.com (WWM) can be found on the WWM website.

In addition to CFDs, WWM - through a third-party - offers direct access to non-US residents to trade exchange trade equities on the US Stock Markets, with more information also available via the WWM homepage.

 

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