The Set-Up The chart below shows Silver in the midst of three trends, one longer-term down, one intermediate term horizontal and one shorter-term up. I've placed a blue up arrow at today's price bar indicating a buying opportunity. It won't take much more than a day or two of lower prices to invalidate the set-up, but for now, it's a buy signal targeting triple digits for Spot Silver over the next couple of months. Silver Three parallel trend channels, one up, one down, one sideways. The Trade If Silver is going higher, today's deep dive to the bottom of the short term upward sloping trend channel is the perfect set-up. From the bottom of the channel, Silver has a clear path to the upper $90's and more. Note that two of the three channels shown come together right around $100. That's the trade. Caveat: Buying Silver on spike down is always risky, but, it looks like today's decline is more of a selling climax than the beginning of a downswing. We will know soon enough. Risk 50% on these calls to make 200% or more. The Option(s) I spent the better part of an hour today trying to decide between the July $75C and July $80C. As this is going to get published, I'm leaning toward the July $80 strike. To each his own. Anyone willing to take some additional risk, the Jun $75C with 34 days to expiration below looks especially attractive for a eminent spike in Silver. SLV 2-Day Longer-term prospects: Wave 3 of (5) higher, starting now, or later this summer. We don't want to miss it, even if it means a false start...or two.
