I'm looking at $19.50 as the target for spot silver. The reason for this is simply because that was a significant resistance which, when broken, resulted in a huge move.
The recent low at 20.2 may even have been enough of a test of this level and the daily chart (not shown) had a large hammer on that day indicating that the $20 area had been heavily targeted.
Having missed that bounce, the way I'd play this now is to either wait for 19.5 or to trade a 123-low breakout. This is when we wait for a higher low to form (I'm talking about using daily charts for this) and then buy when it breaks through to a new high above that of the initial bounce. In essence, that's what happened when the price broke 19.5 - it was a sequence of higher lows and then a break to a new high. This time round, though, there are resistances due to the price history.
The recent low at 20.2 may even have been enough of a test of this level and the daily chart (not shown) had a large hammer on that day indicating that the $20 area had been heavily targeted.
Having missed that bounce, the way I'd play this now is to either wait for 19.5 or to trade a 123-low breakout. This is when we wait for a higher low to form (I'm talking about using daily charts for this) and then buy when it breaks through to a new high above that of the initial bounce. In essence, that's what happened when the price broke 19.5 - it was a sequence of higher lows and then a break to a new high. This time round, though, there are resistances due to the price history.