Commodity Chart Of The Day
The silver correction I've been forecasting in recent weeks appears to be underway, with prices as of this post depreciating 6.5% from resistance in the last two weeks. As most silver traders already know, this market takes the escalator up and the elevator down. Clearly, this is defined in the chart above, as it took three months to appreciate roughly $10/ounce, and it could move half of that in the next two to three weeks, in my opinion.
I've advised traders to lighten up on all gold and silver holdings, as I think a further correction could play out ...see previous posts. As for silver, use the Fibonacci levels in the above chart for targets on bearish trades. There are many different ways to play this, from the standard futures contract to the mini, as well as a combination of bearish options strategies. Contact me for specific strategies.
Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.