Silver triggered a new buy signal after the overnight price dip below the ascending median line. Silver hasd crossed the median line, for the first time, on August 25th. Silver went on to use the median line as support and closed above the line four days in row, before dropping below the line overnight. However, the downward swing was short-lived as it dropped right into a projected reversal/reaction date. The downward swing reached 18.86, taking out the low of the “inside day” before selling dried up and aggressive buyers began to push the market higher. Silver quickly traded above the high of the “inside day” and triggered the new buy signal. This price action sets up a potential rally to the junction where the reaction line crosses the upper parallel line. This price objective also falls in line with a test of the May 13th high of 19.915. The next projected reversal/reaction date is due on September 9, so we could see some volatile action in Silver leading into that date. To learn more about reversal/reaction dates and how to use them in you swing trading strategies go to www.tradersnetwork.com.
