In yesterday’s post goofing on the men who stare at charts, we noted that silver has been expected to get a bounce, but also that nothing technical has changed. It’s a bounce. That is still the case technically, and anyone claiming otherwise is guessing. Sure it could be the bottom, but that’s what a perma-pompom would have thought at every other low as well.
We – men who stare at charts – all see the same thing. Get that? We twittle with different scales, momentum, volume and trend indicators, but we all see the same thing. The fucking stock is either going up, going sideways or going down.
As to the trend line break in silver, All. Trend. Lines. Break. Eventually. I happen to be long the silver bullet from the washout lows, but let me tell you that the shorter the chart’s time frame (daily here) the shorter the efficacy of calls made by men who stare at charts.
I continued to hold SLV through the drop of the last couple of days because I felt I bought it well. But silver is still… bouncing. It’s taken out the short-term EMAs but the first real work it needs to do in going bullish (for non-day traders) is to take out the declining SMA 50 and clear 14 (on SLV, and roughly 14.90 on silver).
As for the miners, we had a timely NFTRH update (still password protected) yesterday showing a daily chart of HUI at a do-or-die short-term support point along with…
A simple daily chart view of HUI showing what needs to happen in order for Huey not to abort its bounce potential. It needs to bounce from the current area to form a small (minor) Inverted H&S or else we’d expect new lows sooner rather than later.
If the IH&S plays out, the bounce from it could yet be vigorous.
So far it’s bouncing from the exact support level we noted in advance. But Huey’s still got a lot to prove as well.
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