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A Bullish Take on Silver's Nasty Reversal

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February 9, 2017 - 11:34pm

Because of the gratuitous nastiness of yesterday’s reversal, I’ve selected a chart for today that shows a bullish pattern big enough not to have been affected by it. Indeed, in this picture, March Silver would become a speculative ‘mechanical’ buy on a pullback to the red-line pivot; and an even more enticing one if the futures were to fall all the way back to the green line 65 cents below. That would represent a decline of about 3.6%, so we needn’t be terribly concerned if sellers were to hit this vehicle hard for another day or two, driving it down by perhaps a further 40-50 cents; the move would still look merely corrective. This is no guarantee, however, that Silver won’t disappoint us as it has so many times since July, when its 25% decline, presumptively corrective, began. For now, we’ll wait for buyers to get traction. They’ll have their work cut out for them on the next rally, since it would need to surpass November 9’s 19.120 peak — a nearly 9% move from here — to reinvigorate the daily chart. If you don’t subscribe, click here for two weeks' free access to Rick's Picks, including daily, actionable 'touts', round-the-clock updates, impromptu tech analysis sessions online, and a chat room that draws experienced traders from around the world at all hours of the day and night.

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About Rick Ackerman

Rick's Picks publishes stock, commodity, and mini-index trading recommendations and forecasts based on a proprietary technical analysis method that took more than ten years to develop and hone.

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