Are Breakouts important? You bet!!!
On 8/18 I highlighted the fact that an ascending triangle was forming in Silver and 65% of the time this leads to higher prices (see post here) . The play was to follow the breakout of this pattern, in the “Hi Yo Silver and Away we go” post. Gold is doing great, yet look what happens when a breakout takes place in an asset class that is performing well!
Silver is facing 30-year Fibonacci resistance in the chart below…
Silver has rewarded investors with a 14%+ gain in the past 30 days!!! If you think that is sweet, you haven’t seen anything yet, compared to what could happen on a “BREAKOUT” of this pattern!
If you don’t own Silver already…climb in the saddle on an upside “breakout!” For those with some nice pocket change already…keep a 5% stop on SLV.
Chris, it seems that the breakout has finally occured! The Silver spot is currently at 21,58$ (with a highest at 21,62$).
Let’s jump in the SLV train!!!
Scott
The chart on silver was a “continious futures chart.” I referenced SLV due to how easy it is for most to own it compared to the futures contract.
Sorry for any confusion.
Chris
The trailing for each person to determine. IMO giving silver 5% is ok.
Scott…The 21.52 is a 30 year fib number that has to have some “crayon/fudge” room…if you need a number I would say the high of a couple of years ago is a BIG KEY…need that number is $21.19. it is hard for me to get a precise fib number of a few decades.
Chris: one other question: does the $21.52 (Line 1 resistance) refer to SLV’s price of that of Silver futures? As I write this, SLV is at $20.91 and the futures are $21.38/oz. Maybe it doesn’t matter? Thanks.
Hi, Chris: and to clarify CK’s question, is $21.52 the price at which you believe the breakout has occurred, or would you add another percent or so on top of THAT just to be sure? Thanks!
Chris,
so if I buy now does the 5% trailing stop apply or should it be tighter?
Thanks
ck
GDXJ… yes, why not…
But to play pure Silver (without gold and other precious metals), SSRI is much better!
CK
Everyone is different. Breakout is best way, yet NOTHING WRONG with picking it up with a stop.
Side note…GDXJ (see Junior mint post) is doing well, GDX still battling with its resistance line.
Hi chris
just to clarify, are you suggesting to buy slv now if you don’t own it already or wait a until after the breakout occurs assuming it has not happened yet.
Thanks ck
Waiting for the BREAKOUT at 21,52$! Ready to buy SLV…