The encouraging look of Silver’s chart may be all that is keeping Gold from doing what it does best every now and then — i.e., ripping those who love it most a new orifice. The pattern shown gives silver bulls running room up to as high as 29.00 over the next 3-4 weeks. It also looks well formed for purposes of initiating ‘mechanical’ buys along the way. I’ve sketched a hypothetical example of a trade we should jump on if the May futures gift us with a pullback to the green line (x=25.05). The position would require a stop-loss at 23.73, implying initial risk of about $6,600 per contract. We’d need to cut that down to $600 or less to make it worth our while, so please join the crowdsourcing effort in the chat room at the appropriate time if you’re keen to play. ______ UPDATE (Apr 29, 10:26 p.m.): Silver has been barely strong enough to keep its snout above water, never mind pull gold higher. It needs to launch a flight of fancy, and soon.
SIK21 – May Silver (Last:26.07)