A query in the chat room prompted me to check out some silver charts, which look most encouraging. The one shown, of Comex May Silver, has the futures bound for at least 16.490. That would represent a nearly 3% move from Tuesday’s settlement price. Given the way buyers punched through the 16.018 midpoint resistance, they should have little trouble reaching the target. The impulse leg is quite strong and the pattern well-formed, so I will recommend a mechanical ‘buy’ at 15.780, stop 15.540, if the futures should pull back to that number from within the topping range 16.110-16.165. As always, using the futures to time your entry, you could substitute equity-based alternatives such as stock or ETFs. _______ UPDATE (Feb 20, 10:07 p.m.): The rally overshot my window, and so I am no longer recommending the ‘mechanical’ trade detailed above. The 16.490 target remains a good bet to be reached nevertheless.
