Day two for Anand in our Guest Trader feature and he’s all excited about silver, bless his little cotton socks.

I hope he gets his trades on in better time than he sends me his posts each day

;-)

Day one is here and well worth a read for those who missed it yesterday.

LJ silver

Long Anand Silver

Silver (I’ve bought here, well supported .. stop $17.90)

Before I go into this idea I have to admit that I have watched the Silver market in amazement over the last few years.

Silver chart 10 06 2014

Silver chart 10 06 2014

Direct chart link

Its been quite fascinating to watch snake oil salesmen like Max Keiser, Peter Schiff et al get on their soap boxes and sell their Silver coins, funds & crackpot ideas to a credulous investing public. The fact they can get away with it is remarkable, but then I guess Americans are quite accepting of entrepreneurial types who are happy to bend the truth for a buck (corporations like Coca Cola have been built on early deceptions, in that instance Pemberton marketed his sugary drink as a cure for various diseases) {Ryan .. I hope ForexLive is happy to take on any legal responsibility for libel claims, as I cant afford to fight a US multinational at this point in my trading career}.

[Editors note - Errr nope, you're on your own sunshine]

So I hope this puts to rest any fears I am a crazed Silver bug … I am not. If anything I am an anti silver bug! However, the technical picture is too good to resist .. the market is well supported, I’m buying silver here and will cut a loss if the market drops below $18 (I have put 17.90 as a stop to avoid the wretched group of stops inevitably placed at $18 on the dot).

AUD/JPY

I’m looking to buy on clean break of 96, target 100, stop at 95.5

I am always looking ahead for potential opportunities. AUD/JPY is a good example, here I am looking for a break of the 96 level, which has acted as resistance 3 times so far (3 is a curious number which comes up many times in various technical market behaviour). I would initially target the 100 level which acted as resistance on 15 March 2013. I would place the stop below 96 (95.5 to avoid market trying to clean the cluster of stops left at 96).

AUD/JPY chart 10 06 2014

AUD/JPY chart 10 06 2014

Note the RSI has broken the neckline of a double bottom pattern. This suggest to me the RSI will go even higher, with the implication that the price action will follow and break that 96 resistance level, leading to further price appreciation.

Simple stuff … but this is the way I like it!