Although Silver got hit hard last week when an abortive Reddit squeeze ran out of steam, the plunge does not look particularly fearsome on the longer-term charts. In fact, the April Comex contract would become an enticing if somewhat scary ‘mechanical’ buy if the pullback comes down to x= 23.11, the green line. I say scary because the implied entry risk, using a 21.92 stop-loss just beneath the pattern’s point ‘C’ low, would be around $16,000 per contract. This set-up rates a 7.7 in my book, meaning I believe it has a 77% percent chance of producing a profit. Regardless, if and when the opportunity to jump aboard should arise, tune to the chat room for guidance tied to a risk-averse ‘camouflage’ set-up.
SIH21 – March Silver (Last:27.035)