Precious metals futures were at a critical juncture yesterday.Gold had tested support at $950, and left a doji. May Silver closed on important support at 13.93; it also was a doji day yesterday, and yesterday’s range was 65% of Tuesday’s-two of the indicators I look for in breakout trading (for an indicator explanation, see my post here).
This meant we should have been looking for a directional move today.Let’s look at what happened to see how things worked out.
Above is the Trade or Fade report for May Silver for Feb. 26. The first spot to look to sell was yesterday’s low of 1357.5, but that occurred overnight, so I passed on that one.Trade or Fade had first support (S-1) at 13.399, which was the breakout sale point. This was hit at 8:55. The first profit target was second support (S-2) at 13.074, which was hit at 9:40, for a profit of approximately $1600.If you wanted to hold out for a larger profit, the next target was the S-3 support at 12.634.They haven’t been there yet, and the double bottom at 12.98 should have been a signal that a low was in place.
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