XAGUSD Silver Ascending Triangle

31 may 2021

Silver looks set to have a second attempt at breakout of of its ascending triangle resistance, which looks to be around the $28.30 level.

The orange circle shows the last attempt which must have hurt for anyone that jumped in before the close confirmation. i typically take the same approach of buying at the breakout rather than wait for the close only I was in a gold trade at that point so wasn't paying attention to silver.

I've overlayed the Keltner channel (3 blue lines) which shows breakouts as measured by a break from the higher line which I set as 1.5 ATR rather than the default of 1 to show fewer signals.

A break of the triangle will also likely penetrate the higher line of KC which i find reassuring as it shows volatility continues increasing.

Price action is above the middle line which is a moving average.

I'll be setting my stop below this middle line, and position size to allow for it and control my potential loss. A stop on the higher side of the line could easily get stopped out in a swing on the upward move.

Updata spotted this triangle, i saw the resistance but the shape so i didn't want to steal it, but i did want to share it.