3 Mo

3 Mo: "

Silver bounced right at the 18 day MA which was the target when stochastics lost embedded status by crossing the 80 line. Additional support lies within a congestion zone and at the 38.2% retracement level. Further support lies around 16.21 and is comprised of the Bollinger band, the Mar 28th low, and the 50 day MA. I entered a option trade outlined below and posted it on my Facebook page. I will allocate another 1/3 at the Fibonacci 38.2 retracement or 16.75.

Silver has paused and fallen back into the Bollinger band. the RSI is hanging around 64 and still has room to the upside. For the uptrend to stay intact, the previous low must be maintained @ 17.60. My bet is that it holds and I filled a Jan 2012 17 Call order with SLV @ $18. The objective was is to allocate this t...rade in 3 lots on price pullbacks, so I am 1/3 in as of now. Delta for the option is .64, so for every dollar of movement of SLV the option gains 64 cents. The contract was filled @ 3.60, and my price objective $5.40. This corresponds to $20.61 for SLV, and yields a trade with a 50% gain.