05/09/14 – The Stop Loss for this trade was taken out in yesterday’s session giving a 1% loss on my trading account balance. This trade on the Silver Producers Stock did trigger positively and then became range bound until this week at which time the market started selling off again. There was no real drop in the Silver price during this week so there is no correlation to suggest that maybe the reason. It looks like this young trade simply didn’t get enough moment from the trigger point before, what was, a negative session yesterday lead by the sharp decline of the BP-NYSE stock. Chart as Below
27/08/14 – The Stop Buy order for this trade tip toe triggered during yesterday’s session and so I am into the trade. The main target for the rest of this week for this Silver Producers stocks trade is to close above the entry point consistently with the Stochastic leaving the Over Sold Zone before the end of the week. In essence I am looking for the momentum to continue with Higher highs and higher lows. Chart s below
26/08/14 – A new Wave 4 extreme low was formed on this silver producers stocks potential trade. The second and normal TJ’s Ellipse was taken out which should now act as support, whilst all the other indicators are still in the green. I have adjusted the Stop Loss for the order to compensate for this new low, which now will be at 5.18 and the target price for profit has changed to 6.70 which still gives a Risk to Reward at nearly 1:3. The next couple of days are critical for this potential trade as some of the indicators are nearing their limits and if broken will make this trade a low probability trade and I will just cancel the order and walk away. Silver producers stocks along with that of Gold producers have the added burden of the commodity price acting on their stock valuations and of course an up turn in the Silver price this week would in turn help this stock price. Chart as Below
23/08/14 – The price for this Silver producers stocks has pulled back on a Wave 4 against a very strong overall Bullish Trend, giving 7/9 of my indicators in the green. The Stochastic has crossed in the Over Sold Zone but has turned back down again, so I would like to see this cross up again at the beginning of next week. The Fibonacci retracement between Wave 2 and Wave 3 are also a factor on this potential trade on the silver producers stocks. With all this in mind, I have opted for a relatively conservative entry to have a higher probability that the price is on its way back up on a Wave 5 movement. The entry point for this potential trade will be above the Fib 0.382 line, above the highs of the last two bars (days) and quite a way outside the Trend Channel for Monday’s bar position (blue vertical line). Also the Stop Loss Loss is below the Fib 0.5 line and the projected price for the second TJ’s Ellipse if that comes into play. So the Stop Buy Order is at 5.58 with the Stop Loss at 5.25 and the initial Take Profit Limit Order is at 7.10, giving a fantastic Risk to Reward ratio of over 1:4 on this potential trade. Charts as Below.