Was that the pullback? Silver traded up to within pennies of it's all time high of $50 early Friday and pennies beneath $45 for a time on Monday. But for the time being the $45 level has held up and silver is now trading at $46 as you can see on the above chart. Below is the corresponding action on the SLV.
Now that is a lot of action for this ETF which typically moves by less than a point a day. I think that yesterday's low of $43.55 is acting as support here. Right now our stops are at $43.29, too close to the action. I want to move them down to $42.79 to avoid the criminality of the market makers. Also, to escape the noise and distortions at the open take all stops off before the market opens. After 15 minutes if SLV is still above $42.79 put the stop in there. Otherwise sell.
To answer the question let's look at the daily chart. You can see the little island that is forming above $45. The ETF went above $45 on heavy volume and came back down under heavy volume as indicated by the volume bars below. What will be interesting is the stochastics. You can see that they have crossed and rolled over. How far down will they go? I don't know, but when they come back up again I believe that will mark the end of the pullback.
Remember new stops $42.79.
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