• Silver SLV

Silver is no doubt a fairly speculative trade, but because I’m trading it with a tight stop-loss that makes sense (i.e. below a critical support level) I’m willing to take a stab at this trade with a stop-loss at $25.40. 

Commodities have, no doubt, been weak of late, and the triple bottom that is trying to form is what creates the basis of my trade. If it doesn’t work out, I lose roughly 1% of my trade value, while on the other hand if the trade succeeds, I envision it playing out to the tune of 5-10%. With that kind of risk/reward one can be right far below 50% and still make a decent living trading the market. 

After posting this trade, Springheel Jack (@SHJackCharts on Twitter) noted though that Silver has a confirmed rising support trend-line from 2008 low Friday by bouncing there. But today it is dropping below it. Different perspectives on trades are useful and reinforces the belief today, that I shouldn’t give this trade to large of a leash if it doesn’t play out according to my original thesis. 

Here’s the SLV Trade Setup.

Silver SLV

 Fuinhaz (whose Daily SPY reads are now on SharePlanner) brought this trade setup to my attention – give credit where credit is due. 

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