Silver: Money Flows + Analysis of Current Price Action

Research Notes For 09 to 13 June > https://www.unum.capital/post/r0913june

Trade Local & Global Financial Markets with Unum Capital.

To get started, email tradingdesk@unum.co.za

Money Flow at multi-month highs.

Here's a breakdown of the current price action:

• The 7-day trend is indicated as "High Bullish Momentum / Approaching Overbought," while the 14-day trend is "Very Bullish."

• Comparison: Both the short-term (7-day) and slightly longer short-term (14-day) trends indicate upward momentum ("High Bullish Momentum / Approaching Overbought" and "Very Bullish" respectively). This suggests a consistent buying pressure across these timeframes. The "Very Bullish" 14-day trend reinforces the "High Bullish Momentum / Approaching Overbought" 7-day trend, indicating that the recent strength is part of a broader upward movement.

Potential Trading Approach:

• Short Term (Approximately Next 1 to 10 Trading Days): The model notes, "Aggressive Buying Wait For Pullback To Enter Next-Alternatively If The Highs Fail To Hold Then Short Back To The 8 Or 21-EMA."

  • Approach: While there is aggressive buying, the recommendation is to wait for a pullback before entering. Alternatively, if the highs fail to hold, consider shorting back to the 8 or 21-period Exponential Moving Average (EMA).

• Medium Term (Approximately Next 2 to 4 Weeks): The model indicates "Aggressive Buying But Do Not Chase-Look For Overshoot or Failure To Hold Prior Session Range Highs To Short-Sell Back To The 8-EMA."

  • Approach: The medium term suggests aggressive buying, but cautions against chasing the price. Instead, look for potential short-sell opportunities if the price overshoots or fails to hold above the prior session's high, targeting a move back down to the 8-period EMA.

• Long Term (Approximately Next 5 to 8 Weeks): The model states, "Has Resumed A Bull Move In A Strong Upward Trend."

  • Approach: The long-term perspective indicates that SPOT SILVER has resumed a strong upward trend. This suggests a continued bullish bias over the next 5 to 8 weeks.

Overall Trading Considerations:

• Consistent bullish momentum: Both short and slightly longer short-term trends are bullish, supporting upward price action.

• Short-term caution: Despite the buying pressure, the model advises against chasing and suggests looking for short-sell entries on weakness relative to the prior session's high or waiting for a pullback.

• Medium-term aggressive buying with a caveat: The medium term reinforces aggressive buying, but highlights the importance of not chasing and considering short-sell opportunities on overshoots or failures at prior session highs.

• Long-term strong upward trend: The long term clearly indicates a resumed bull move in a strong upward trend.

In summary the current view is bullish across all timeframes, with a long-term strong upward trend. However, short-term and medium-term traders should be cautious of potential overshoots and failures at prior session highs for tactical short opportunities or wait for pullbacks for long entries.

Lester Davids

Senior Investment Analyst: Unum Capital