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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