Good evening team,
Fairly quiet start to the trading week with low volatility across the board. We are expecting volatility to pick up leading into the end of the week due to a number of high impact risk events. We are sticking with our pending orders on the USDCHF and EURCHF for the time being and also have positions running on the USDCAD and PAYPAL which is moving in the right direction.
On the fundamental side, the Pentagon plans to order and send to Ukraine 10 of the newest model Switchblade drones armed with tank-busting warheads in addition to previously announced deliveries of a less powerful version, according to two people familiar with the decision.
The new Switchblade-600 weapons are part of $300 million deal in lethal military assistance announced by the Pentagon Friday night, that will be contracted directly from industry instead of drawn from existing stocks, according to the people, who asked not to identified discussing the plan. Whilst the financial markets are continuing to run to the upside, the conflict in Ukraine is still very much heating up. With the ongoing conflict, we see metals as a possible opportunity, especially due to the counter trend declines on silver and gold.
SILVER Daily Chart
There has been a return to the scene of the crime on silver with a classic retest scenario.
SILVER 4 Hour Chart
There has possible been an ABC correction (3 wave decline), followed by a higher low inside a bull flag structure. We are looking to go long on the bull flag breakout for a run into 26 and 27 initially.
Trade Setup: BUY STOP – entry price 24.90, stop loss 24.00 and take profit 26.00-27.00
Stop loss: 90 pips
Take profit: 110-210 pips