Looking at the silver chart we observe a bull flag forming. It would have been best if it only corrected 50% of the recent trading range - making a perfect bullish pattern, however it is still moderately bullish. I mentioned yesterday that this week 26.3 is the target - we have already seen 26.6 - roughly a percent off the target. We could still see 26.3 tomorrow - but if we hold the 26.9 level and close above it - then 26.6 was very likely the low in this short term cycle which continues down till FEB 17th - but as long as 26.9 is held, the low was seen. Recently we have seen platinum rush higher and if it will start to pull back - gold and silver should be under some pressure, however not certain that the pressure will be strong. We will take a closer look on the weekend. Right around the 30 dollar mark reached a week ago I posted an idea telling everyone not to chase the move. The pullback came as I expected and now it is much safer to take long positions, nevertheless we should continue to be cautious and protect our capital with stop loss orders placed at an appropriate price. Otherwise, you should maintain such a position so that you have enough margin to stomach at least a 20% move against your favour. Always remember - futures trading involves a substantial risk of loss and is not suitable for all investors.
Comment:
Nice close. Will update on the weekend.
