NFTRH+; SLV/Silver short-term objective [w/ edit]

Silver (SLV) has formed a little inverted Head & Shoulders pattern with a measurement to around 23.25 that would fill the gap (down) in May at 23.16. If it plays out it would bring the silver price to approximately 25.60 (current price: 24.03).

RSI has ticked positive and MACD is negative but triggered up. Gaps represent emotion and closing out the one in SLV would close out whatever event, jawbone or Fed hawk fear drove silver down. Then silver would need to make a higher high to May to clearly call the correction over and the next leg of the bull phase on. As with GDX, I’d prefer a downside gap fill of the March lift off, but the market is going to decide. I just wanted to provide a little short-term perspective with this chart.

SLV can do some serious bouncing before definitively ending the correction. If we see some volume come in that would be helpful to the bull case.

[edit] The little pattern is not activated. I should have explicitly noted that. It would be activated if it takes out the neckline (not drawn in here), which would happen if it takes out the previous high (it pulled back a bit from the neckline after this update).


This Post Has 4 Comments

  1. Paul

    Bond market is puking hard. Today looks like the day everything changes.
    The “fade the a.m. spike” in GDX today was, um, nasty.

    1. Gary

      Well, I was out all afternoon (just back 2:55 ET). Fed on deck, b/s in the air. It’s no use making sense of the markets for now. SLV repelled from the neckline and I’d like to see GDX fill the lower gap. Broad markets were/are at risk.

  2. Paul

    Without naming names, I’m watching *massive* short-covering rallies in high-div-paying stocks I own — much to my delight. These issues have gotten absolutely pulverized by the shorts. One day wonders do me little good, however, need to see some follow-through. Maybe Da Boyz are rotating out of tech and into beaten-downs that have room to run. We shall see.

    1. Gary

      Well, if you’re talking about the industrial metals miners and commodity producers, I agree. Short covering. I expect it all to fail. Tech may or may not be played out yet, but now we’re getting a rotation to small caps and the commodity stuff a bit. Cash, baby. That’ll continue to be my default position until I get a real conviction trade/investment.

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