SLV: The 3 Bullish Falling Wedge Targets

From pre-market comments on the SLV, on May 5:

"The SLV broke out of this Bullish Falling Wedge yesterday, on a print of 12.69. The 8, 55, and 89 RSIs came into Bullish Synchronicity on April 30, which means that the 12.30 high of that session is the "Buy Pivot," and that a print of 12.31 in the next session was a Buy from that particular indicator...

The upside targets IN PLAY, listed on the chart, are Black Data Point #3, Black Data Point #1, and the measured move off the pattern breakout, respectively.

14.45 - High of the pattern
11.64 - Low of the pattern

14.45 - 11.64 = 2.81 points of upside, added to the point of the breakout.

2.81 + 12.68 = Target: 15.49 IN PLAY"

All three of the Bullish Falling Wedge targets got MADE, within one penny. Yesterday's high was 15.48. The close was 15.47. Again, we can't require exactitude from Ms. Market with these targets, but a penny is as close as we're going to get to exact unless it actually is exact. LOL.

"Take profits, or at least some profits, when targets get MADE."

This trade turned out to be one of those "no brainers" insofaras it went directly to the final pattern target in 37.5% (close to a Fib 38.2%) of the time that it took for the pattern to form.

CNBC mentioned yesterday that silver was up something like 23% in the month of May, its best monthly gain in a number of years. We can see that the technical breakout of The Bullish Falling Wedge in early May certainly supported such a big rally. It seems fitting (and, rather tidy) that the last of the targets should get MADE on the last day of the month ;)

Too bad that I was a day late posting the chart, and the breakout. We got a gap up, and no chance to get in on a pullback, but that's alright. We still can use it as a learning experience, which is what my blog is about.

Buying the SLV on May 1, above the last Buy Pivot, at 12.31 (the last green circle), was an ideal place to enter a swing trade for a gain of 25.6% at yesterday's final target. Very favorable risk:reward. Intial stop: Below 11.64, the low of The Bullish Falling Wedge, at Black Data Point #4.

Risk: 12.31 - 11.67 = 0.64 points.
Reward: 15.47 (BID price on a sell order)- 12.31 entry price = 3.16 ponts

Risk:Reward ratio: 1:5

If we got stopped out on FIVE trades like this one, and won only ONE of them, we'd be no worse off than break even on this kind of risk:reward.