Silver Futures, Daily Chart

Silver shot up yesterday, moving above $5 an ounce. Dollar weakness leads to strength in gold, but that link doesn't usually extend to silver. People who trade with the trend should've caught this pop after entering around $4.72.

Silver Futures, 30-minute Chart

You can see on the 30-minute chart that the narrow range, inside bar that offered a perfect set-up to get long. The initial protective sell stop was around $4.65, giving a buyer about 7 cents of risk at first, which is pretty wide (each 1 cent move in silver is worth $50 per contract), but you could've tightened the stop up quickly to breakeven.

Obviously you'd want to move your stop up pretty aggressively here to lock in your profits. Given the extreme move yesterday, which provided a huge windfall gain, some folks might choose to sell at least part of their position now and trail a stop on the remainder.

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