It’s been a while since we looked in on this stock, a favorite of traders and investors because it tracks the price of silver with such fidelity. By exceeding two prior lows — one internal, the other external — the selloff of the last two days has generated a bearish impulse leg on the daily chart. However, notice that the decline has done little damage to the bullish look of the rally since December. My gut feeling is that the current weakness will not exceed the 20.93 low recorded on January 8 (see inset). This implies that we can use an ABC pattern similar to the one shown to get long. Stay tuned! _______ UPDATE (Feb 1, 11:14 p.m.): Based on the above, a buy signal was tripped at 22.62 off a point ‘C’ low at 21.80. The trade would require a stop-loss for the entire position at 21.79, held against an order to take a partial profit on half your shares at 22.62. There are less risky ways to get aboard belatedly, but I’ll wait to hear from subscribers in the chat room before I establish a tracking position. _______ UPDATE (Feb 2, 10:11 p.m.): Nothing reported, so this tout will be shelved in the archive.
