Where to Back up the Truck in Silver

by Rick Ackerman
Silver Seek

July Silver’s weekly chart shows why bulls should be optimistic. Notice how the A-B ‘booster stage’ of a possible bull market exceeded three prior peaks (see inset), two of them ‘external’, before buyers took a breather. This offers strong evidence that the sell-off from early May’s high near $18 is merely corrective and extremely unlikely to wipe out 2016’s gains. A theoretical ‘buy’ signal would trip at 16.638, and although we can use camouflage to get long there with relatively little risk, my hunch is that Comex Silver is not yet ready for a big leg up to match April’s. In the meantime, we shouldn’t fear a further pullback to as low as 15.000, since that could set up a very opportune ‘counterintuitive’ trade that could allow us to back up the truck with entry risk tightly controlled.

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