The bull market in precious metals paused yesterday; this correction was a good chance to buy silver.The green line in the chart below is the swing high from September 25th. 1393 has served as support for the past sessions; yesterday’s move below there proved to be merely corrective. Momentum (the bottom panel of the chart) dropped to the zero level for the first time in six sessions, giving a buy signal. I was looking to buy as it dropped below, then moved back over 1393. Stops could have been placed below the intraday low at 13.85. The first profit target for the buy was yesterday’s high of 14.37, further targets are 1487 (50% retracement of the March to Nov. ’08 decline) then a psychological target of 15.00. Near term, momentum is still low enough for the market to rally. The longer term charts look bullish as well; the May low at 1638.5 is a major target.
Daily March Silver Futures Chart
