Why Silver's Small Rally Packed A Big Punch

January 19, 2017

Silver futures sold off hard Wednesday after peaking around mid-session, but not before generating the most promising bullish impulse leg that we’ve seen in a long while. Notice in the chart that the modest rally, which lasted for just a couple of hours, exceeded two prior peaks stretching all the way back to mid-November. This implies that there’s some real power pushing silver higher, notwithstanding the whipsaw price action that concluded the day.

It also implies that any weakness in the days or even weeks ahead is corrective and therefore a potential buying opportunity. We’ll be looking to use the lows labeled in green to create trade set-ups that can significantly reduce entry risk. Stay tuned to the chat room for further guidance in real time.

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