Gold and Silver Overbought, Due For A Pullback
In these articles I mentioned a target of $21 by the end of the year. Right now silver has reached that target after making an explosive move higher. Silver has made a 15% gain in 5 weeks. I have found having targets and taking profits at overbought conditions is crucial in a trading strategy. As a trader it is of primary importance to understand long term trends and in a bull market to add to positions when they are on sale and take profits when it is receiving a premium. Using oscillators to determine warning signals to buy and sell are extremely helpful but needs to be used carefully. Breakouts could lead a momentum indicator to stay at an extreme ratio for an extended period of time which is the case for silver and gold at the moment.