SLV is still flirting with resistance at the $40 level. As per earlier update my plan was to complete our position once $SLV broke $40 a share, but something better may happen instead.
Take a look at the daily chart for SLV above. You can see how it was repelled from the $40 mark last month. Now with the stochastic near 80 and going down you could expect a pull fall back. How far back? Well the 100 day moving average has provided guidance since the breakout at $17. If SLV is going to continue to go upward any violation of the 100 dma around $36, would be suspicious. In fact we have our stop at $35.16.
So, the new strategy is this. If it breaks above $40, buy. If it falls back toward $36, but not below buy when SLV starts to recover on rising stochastic and volume. If it breaks under $35.16 get out.
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