The Silver market is challenging the upper boundary of a major bear channel or flag on the weekly and daily graphs. This breakout roughly corresponds to the Oct 38 high at 3570. As I write this the Silver market has traded above $36.
In my mind, the upper boundary needs to be decisively penetrated. This would mean a close over $37. There is a tactical problem with this breakout — how does not buy the strength required to confirm a breakout without extending risk to a level beyond reason.
Risk management and entry strategy is obviously up to each individual trader. In my approach the correct spot for protecting a long trade would be the low of Feb 23, or 3423. An optional spot would be the Feb 27 low at 3504.
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