Bought a little here to see if this selling is end of quarter losses being taken. Silver is flat today and this is down 2%, so may be influenced by prepared sell orders regardless and a lack of buying into end of quarter. Just a little for a trade into tomorrow. I am still looking at not adding much size until 22 area with silver priced here, but that will change with silver tonight at 2am.
I am going to put in a stink bid for a few May $23 calls and see what happens. I think the moving averages are going to provide support and the recent period trading between $25 and $26 will likely be a resistance interval, but I believe the price will soon be approaching $29 or $30 with a little news catalyst.
Just a note on the moving averages, price today on either side of the 200 dma. Also no moving average I commonly use is lower than 22.46, the 100 and 90 are about there, the 200, 50, 20, 10 etc are higher, Is 22.46 support or should it be read some other way ?
Retrace I was expecting was a iv , but price has overlapped the wave I at 22.93 , so considering this may be a II wave, retrace has made 61.8 % retrace in any case, 22.52 next support at the 78.6% retracement. 24.16 my next target, ie , higher not lower than 22.27
Hope you took a profit on your calls today. Good call on that one. I am usually thinking longer term with options. 23 or 24 or 25 calls for cheap, looking for 28 or 29........delicious. Sell enough early in the run to break even and hold the rest without worrying too much. Thanks for your input.
How does this affect your timeframe to 29 area? Obviously, silver needs to hold above the latest low. I am in wait and see mode. Looking to buy 23s for about 0.35, but not sure if the front month is going to allow enough time.