Looking at a chart of the SLV I get the feeling that we will soon be stopped out. Look how it traded yesterday, it gaped down and traded below 100 day moving average for the entire session. As you can see the 100 day moving average has provided support since the breakout last September until the violent correction just last month. Right now this ETF looks heavy to me, and I suspect we will soon be testing the next level of support at $32.50.
Moreover the stochastic and the MACD are both heading down with no sign that they will turn around soon.
The SLV broke out from $17 last August and climbed all the way to $47.50, before falling back to find support at $32.50. The original breakout was worth about $28 and the retracement was about half of that or $15 which is roughly expected. From here it could go either way, but as long as it trades below the 100 dma the downside has the advantage. If we break through support at $32.50 then next level of support I see doesn't occur until the $25.
Our stops are set at $33.39. The question now is what to do next? The best answer I have is to wait and let the market make the next move.