I don’t like this bullish pattern as much as the one I’ve featured in the Gold tout, but it is certainly good enough for government work. It suggests that May Silver will become a fetching ‘mechanical’ buy when it touches the green line (x=77.043). Keep in mind that x is not a support, a target or a Hidden Pivot, just a place where we organize certain types of trades. The implication is that the futures could keep falling all the way down to c=63.667 before they turn around. At that point, the position would be showing a loss of slightly less tha $67,000 per contract. Obviously, the trade is only for those who can handles the risk and who know how to set up small-pattern triggers to get aboard. Because of the look of the pattern, the trade rates a ‘7.8’, which, although very appealing, is significantly lower than my rating for the gold trade.
$SIK26 – May Silver (Last:81.343)
