Autochartist - Daily Commodities Update: Silver

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by Raghee Horner

The congestion on the 60-minute chart of Silver has tightened into consolidation. This has been confirmed by the three-bar Initial Trend reading which indicates low volatility and a narrowing range. This lends itself perfectly to the Triangle pattern that has alerted as price action squeezed into a range between 24.44 and 23.90.

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The market is poised to breakout through the resistance of the Triangle's downtrend line. In turn this would trigger an Autochartist Initial Movement/Momentum ( AIM ) entry which would capitalize on the momentum through the pattern as the neutral market reveals the next wave of momentum in Silver.

Ideally a six-bar or greater Breakout reading should confirm the bullish momentum of a break higher. Additionally a MACD Histogram could be used to confirm the direction of the break. The high Clarity reading of eight bars decreases the chance of a false breakout as price action is organized with little noise and random movement.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities

Referenced Stocks: AIM

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