Patrick MontesDeOca, CEO of the Equity Management Academy, said the silver “correction has been completed and silver has resumed the uptrend and is set to challenge the highs of $18.50.”
MontesDeOca said, “The silver market corrections are pretty shallow, not as deep as previously, and the pattern seems to be more of a continuation pattern.” He also recognized a descending wedge, which is a bullish indication. If the market wants to close above the resistance line, it would activate a buy signal. He said, “We have entered into a bullish low, trading above the 9-day moving average, and above the wedge resistance line. We ran up in the past few days to high of $17.74. That’s a pretty substantial gain from the low of $16.63. That’s more than a dollar move in five days. The market seems to be supported by very strong demand on any corrections.”
MontesDeOca said, “We recommended after the market hit a high of $17.7450 and met our weekly targets we published Saturday, that these targets were completed.” The action today, he said, is “a very important indication that the market doesn’t have any interest in moving down below the 9-day moving average at $17.30” He sees a “tremendous amount of support.” If silver does close within 25% of the high, around $17.50 or above $17.42, it “would be an indication of pretty much a resumption of the up-trend.”
One of the indicators that we use, Fibonacci trend lines, he said, is used to identify the support and resistance numbers. MontesDeOca said, “Once the market broke above the resistance numbers, the target automatically was $17.70 to $17.77. We announced it in the trading room,” that was the level to take some profits off the table and adjust your positions a little bit. “It did turn out to be true as the market came down to $17.46.”
MontesDeOca said, “Today’s action in the market was extremely bullish. The market came right into our daily codes to buy one at $17.31 and buy two at $17.20. The market coming down to $17.26 activated the buy signal..of about $17.31.” He said, “We are penetrating weekly resistance and daily averages that indicate that the market wants to move higher, testing that $17.73 level or higher.” If silver closes above the highs here, he said, it will indicate a buy signal. He sees “Hardly any resistance all the way up to about $18.52.”
MontesDeOca concluded, “This correction has been completed to the downside and has resumed the uptrend and is set to challenge the highs of $17.77. Closing above $17.77 will activate the targets above of about $18.51.”
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