Sunday, February 13, 2011

Trade Update: SLV

The first point was formed on December 6 of last year at $30 a share, the second point was formed last month at $30.44 a share and now SLV is retreating from the $30 range again. The interesting thing is the stochastic which is oversold turning down with the fast line crossing over the slow line. This is very bearish in the short term.

But I also see strong support at $26. So, it's very possible that SLV will continue to trade sideways between $26 and $30 a share. This would not be an unwelcome development. Such consolidation would pull the 50 day moving average up toward the range of consolidation and portend up would break out when that finally occurs.

I am not saying what will occur, but I will not consider dumping my shares until and unless there is a serious breach of $26.

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