Lining Up a Focused Shot

Silver and natural gas have my eye this morning, with silver bouncing back impressively from Friday's post-jobs number drubbing of the precious metals and miners. And natty is still trying to find at least a tradable bounce of its own after crude did as much in recent weeks. 

One of the hallmarks for the precious metals and miners in 2015 has been the newfound strength of buyers to arrive to scoop up gold, silver, and the miners even in the face of some nasty gaps lower. This can be seen as a clear change in character from recent years, where buyers were wiped out and sellers made out quite well. On the weekly chart for the silver ETF, first below, I am looking to see if the 20-period weekly moving average (orange line) now acts as firm support to cement a major higher low.

And as far as natty, keep an eye on $13.32, a short-term resistance level above on the UNG ETF, seen on the second chart on the 30-minute timeframe. Above there, and I expect some type of squeeze to get going.

Taking your shots in the commodity space requires laser-like precision and focus, and of course supreme discipline to fold your hand quickly when the market proves your trade wrong. But when they hit, they hit big and the wins are more than worthwhile.