Submitted by FMX Connect
Yesterday we published an article calling for a breakout in Precious Metals with a focus on Silver.
The breakout has occurred and you should be long both metals.
If you are long, or want to get long here your stop losses will be wide and volatility based. Here are some tips on managing the positions:
- Silver Stop Loss should be $32.45. You can pick a tighter stop if you like, but this is the proscribed level for pullbacks to go to and the bull move to remain intact. Losses can be managed by adjusting volumes rather than tightening stops.
- Gold Stop Loss Should be $1680.00. This may seem less risky than silver, but that often means worse reward potential.
- Tomorrow morning trail stops higher as profits occur, use previous lows, highs on the hourly level or the top Bollinger Band line on the Daily chart previous session.
- Get ready to take profits aggressively: when these hit, 80% of the projected volatility based move is in the first 72 hours
- Get out if you are not in the money in 48 hours, even if your stop isn’t triggered. Momentum fades fast if you don’t get follow through from the immediate push.