Monday, May 2, 2011

Trade Update: SLV


As badly overstretched as silver is it is showing signs of support at the $44 level. Last Tuesday when the SLV gapped down big at the open it was held at around $44 as you can see from the intra day chart it held there again today.

Somethig else is very interesting, there is a higher low forming on the . Notice how it climbed from under $44 all the way to $46.23 and of course the stochastics echoed the move. Then SLV fell back to $45 and the stochastics followed suit, but look at where they are turning back up, it is where SLV is at $45 dollars. That is how up trends start and continue.

All if this is taking place in the 15 minute chart which is loose, but there is a chance here. I think the best we can hope for is a long sideways consolidation, but even that is getting ahead ourselves.

The days low is $43.58. We have our stops at $42.79. Just leave them in for now.

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