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Iam thinking we could get a short term bounce in Silver from here back to $16.50 without much effort.
If you weren't prepared to carry much risk, you would run some stops at $15.80 to walk out of the trade.
Have started to take a position via the listed warrants and will look to add further if I can free up some capital over the next day or so.
Technically looking at the charts i like the fact that the candlesticks have moved back inside the bollinger band, this tells me that we can expect a more 'normalised' price from Silver over the near term. It doesn't say that the price decline is over, as we could very well re-test the recent low's before moving forward. I give this a low probability of occurring though.
With the RSI now in 'oversold' territory, Iam comfortable to start building a position. I also like that the stochastics are well 'oversold' and starting to trend up. MACD isn't an issue, as a short term move higher in the price of silver could see the gap close on the technicals.
$16.50 is my target.
For those looking to punt, i mean play at home, Citi has a few listed warrants with a range of stop losses / gearing., ranging from the hottest to the least geared;
ZSIKOE with a $15.13 stop
ZSIKCC
ZSIKCA
ZSIKOF
ZSIKOG
ZSIKOB
ZSIKOA
ZSIKOC with a $6.45 stop being the least geared.
