The daily chart on silver has formed a pennant or triangle formation. The difference between the two is that pennants follow a steep near vertical trend ( the flagpole) and are usually small formations ( no more than about 3 weeks on a daily chart)
The strategy posted on the chart below assumes this pattern is a pennant. The flagpole is assumed to be the last vertical rise into the pattern. The profit target projects the height of the flagpole from the lowest point of the pennant. A filter of 15c has been deducted from this projection to calculate the profit target
The stop is placed 15c below the last trend trough in the pennant formation. You may also have a strategy of making the stop dynamic and moving it up behind any new corrective troughs if an uptrend becomes established (say after price gets more than 1/2 way between you entry and profit target)
Your strategy may also involve waiting for a confirmed break of the pennant restistance to trigger entry. Using a filter of around 15c this may require price to trade at 29.60 or above on the current candle.
Finally, a conservative approach may involve abandoning this set up if it doesn’t trigger on the current candle. If it doesn’t break now, it will be drifting too far into the corner of the pennant/triangle formation. The further price works into the corner before breaking out the greater the possibility that the ” break” out of the pattern is just more sideways drift rather than resumption of a strong up trend
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