In the May 2014 Silver (or Mini Silver) futures, a recent up-trend has consolidated just above the $21.500 level over the past seven trading sessions. Equity markets have been weighed down by a round of profit-taking in the initial morning hours, giving way to strong upside potential in the precious metals markets.
Yesterday's trading session, February 25, 2014, provided an outside reversal on the daily chart. The market failed on a downside move, reversed, and closed above the high at $22.030. This price action is a bullish near-term indicator.
I would expect a strong move to the upside in the coming days from the current price of $21.930. The next upside target level would be the swing high of $22.235. It would be recommended to trail stop orders behind the market as it continues to establish new highs, with an initial stop order placed behind yesterday's low of $21.578.
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