The Silver Futures contract (SI) has been extremely bullish since the summer, making every pull-back a buying opportunity. The combination of a triangle breakout and the now-famous Modifided PEMA Crossover Buy Signal indicates a push to new highs above $29.35.
Modified PEMA Crossover Signal
The daily chart of Silver shows the Modified PEMA Crossover signal has fired numerous buy signals throughout the rally, making for extremely precise entry opportunities.
Price continues to honor the 21-period pivot-based EMA and the reversal from the moving average along with the new buy signal indicates another push to new highs.
Triangle Breakout
The recent Buy Signal also coincides with a breakout from a clearly-developed triangle pattern, which formed throughout the month of November. A breakout from this pattern indicates a potential trending month for December.
Since the back end of the triangle spans about $4.25, we could see a move toward a target of about $32.25 in the next few weeks.
Let’s see how this setup plays out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
Good call!
Thanks! The calls in the last fews weeks have been great! I love when the market cooperates 🙂