Thursday, October 16, 2008

Silver Attention! -IFCN Wk 45 – Thu – Equity $1,246.21

You might find the following daily XAG chart interesting----

I've talked about diagonal triangles before, and there has rarely been a better example than is now visible in XAG (silver). There was a fast drop again today, with a tap to a slight new low, which touched the support-line created by numerous decending lows on the chart. According to practical technical analysis, when the downsloping resistance line (upper line) is breached to the upside, the next impulse move should be under way.

Due to the fortuitous drop in silver today, I bought 100 units of XAG @ 9.50. I have a stop placed at $7.50. ($200 risk) I have little concern of that stop being touched.

The week's remaining FirstStrike trades:
  • Gbp/Jpy: Long @ 171.74, stop 169.94.
  • Gbp/Usd: Long @ 1.7119, stop 1.6999.
FirstStrike trades not stopped out before Friday-- exit on Friday just before 15:00 CST.

Current trade equity is: $1,208.21.
Silver position equity: $38.00
(Current XAG price: $9.89 – 100 unit position average: 9.50)
TOTAL Equity: $1,246.21

Have a good morning.

Joel Rensink

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