Silver Update. How To Enter A Short

click chart to enlarge
(then hit the "back" button in your browser to return here)

Futures and options trading contain substantial risk of loss and may not be suitable for all investors.

We thought we would use this chart as an update to our Silver market section from last week’s Trade Focus dated December 10 2009

The chart is a 120 minute bar chart where each bar is the price range of each 120 minute interval. Overlayed on the chart are Fibonacci retracement levels of the recent secondary down wave. It can be seen now that the price has returned to the level of a suggested short entry. The other approach of initiating a short entry based on a close at or below 170400 basis the March contract has yet to be elected. We believe it to remain a valid approach.

Fed announcement an hour away. Anything can happen and usually does!!

Below is the Silver section of the Trade Focus December 10 2009 edition.

Silver (Mar.) -- Unfortunately our short entry suggestion from a price level of 191500 or above made last week would not have been elected. We will however suggest two new short entry approaches this week with the first being from a price level of 176500 or better. Stop protection for this short entry approach we believe should be intraday penetration of 184200. The second short entry approach we will suggest is with a close at or below 170400. Stop protection for this short entry approach if elected we believe should be intraday penetration of 177300. New retracement levels of support to offer are approx.: 172970 (hit); 166200; 159430. Another series below this is approx.: 168780; 160650; 152520. One more series below is approx.: 165860; 156830; 147800.


** We want to make a note here which may be of interest and have some effect on some followers. Until further notice the Trade Focus will not be available at our website. It will only go to email subscribers and clients. This is a technical issue we hope to have resolves as soon as possible.

We apologize for any inconvenience this may cause.

Good trading to all!!


Jeff

CB&S