Just a reminder, these charts are posted as examples of the trades on the nightly COT Signals email. These trades will help illustrate the mechanics that go into creating the nightly email.
Good morning and welcome to 2010.
Last night’s COT Signals spat out a buy signal in March Silver. We can see that silver has sold off since since the end of November. This also coincides with the Dollar’s rally. However, even as the Dollar’s rally picked up steam through the month of December, we can see that Silver continued to hold support between the $16.75 – $16.90 area.
During this oversold period the commercial momentum maintained a positive balance and we waited patiently. We now have our entry signal to buy. We also have our protective stop level – $16.765. With this information, we know what action to take and most importantly, what risk to factor in for the trade’s impact on our portfolios.
