Going Long Silver on Breakout Above Sideways Channel

As we discussed in our post: Silver Moving in Sideways Channel, we have been waiting for a break above or below the sideways channel that Silver Futures have been stuck in for the past 3 months.  See the Daily and Intraday Silver Charts below.

Today, prices spiked up to 21.32, clearing breaking though the top side of the channel shown in the Daily Silver Chart below.  Therefore, we are going long Silver Futures with the purchase of a 21.40 Call Option for a premium of $2,705.00.  This option expires on 4/24/14.

We anticipate prices to move up to the same degree as they moved sideways.  Therefore, we are looking at an upside target of approximately 24.00.

Daily Silver - May 2014Intraday Silver Prices

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