Our original view of silver had it completing its pullback around current levels and we sold on this basis. Price action has now changed our view, the move higher now looks like a 5 wave move, it is our experience that impulsive moves of this manner are almost alwyas followed by another 5 wave move and as a result we now believe that the recent rise is only the first leg of the cirrection higher. We have set the stop to zero and fully expect to that stop to be hit. It is worth noting that Silver has a tendency to produce a double top with the fith wave failing to make a new high, if this is the case we will continue to hold and allow the breakeven stop to activate should the third leg higher get going. US dollar weakness continues at present but it is still too early to say a new trend has developed, of course we are always mindful that trends starting in January have a habit of lasting throughout the oncoming year. We will be watching the USd closer than normal over coming weeks, if it is a change of direction we would like to be in early but we dont want to sell a fake move and lose money.
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