Silver lags gold within the bullish framework of price action since mid-December. The 26.13 target of the pattern shown remains viable nonetheless and is no less likely to be achieved than it was last December, when the bull trade was first signaled. The pattern has produced one excellent ‘mechanical’ buy at 22.59 that would have yielded a profit of as much as $22,000 on four contracts, and it would likely produce another of the March contract were to revisit x=21.59. alternatively, if the futures continue higher, a pullback from p2 to p could be bought ‘mechanically’ with a textbook stop at 22.98. That implies about $16,000 of risk, so this gambit is for ‘camouflageurs’ only. _______ UPDATE (Feb 23, 11:36 p.m.): The very steep dive from a peak 50 cents below D=26.12 did not negate the target. If you are trading this vehicle ‘mechanically,’ I’d suggest waiting for a play at the green line instead of at the always-riskier red line. Here’s the chart.
