Target 2 reached in Silver (Copper target reached)
The second target for the bearish "Head and Shoulders" pattern on silver was reached for greater than $25,000 per contract. The target was using "Measured Rule", which takes the distance from the top of the head to the neckline, and adding it onto the breakdown point.
My previous post on silver and the first target of the "Descending Triangle" being reached for $11,000 per contract can be found here: http://scottpluschau.blogspot.com/2012/05/target-1-reached-on-silver-update-on.html
Once again a trailing stop loss put in any place other than what would have invalidated the trade idea or confirmed a reversal, (such as a fear of losing profits) would have been brutal had it been stopped out prior to the target being reached.
The bulls would like to see some horizontal development for a change of pace. I know exactly what I am looking for in order to get involved.
I am looking forward to laying out the case again when the time is right as always.
(Click on chart to expand)
Will the supply side pressure in the metals finally be able to subside? Gold reached the target yesterday, and along with silver, copper reached its measured rule target today as well. See right hand side chart below in copper.
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