GDXJ and SLVP Wyckoff Accumulation Pattern Study.This is my first time doing this, it really looks like the text book accumulation is happening here.
SLVP
Is silver about to turn bullish?Good afternoon traders,
Been quite some time, my workload is year round, however it's quite seasonal. I'm finally coming off and find myself with some time to do some charting.
Silver is one of my long term holds, it's at historical imbalances with gold, and once again, expected to out perform gold in 2019, take that with a grain of salt because as we all know, metals aren't the cool investment on the block these past years.
Let's dive in.
Bullish Key Points:
1) Silver is currently sitting underneath the 21 Weekly EMA, the first test will be to clear this hurdle and start trading between the 21 and 50 EMA.
2) The 21 and 50 EMA have crossed on the daily chart, last time this has happened was June 8th and silver rallied almost 6%.
3) If silver can break the 21 weekly EMA, then it has another immediate test @ 14.00. Beyond this, we have the local downtrend channel dating back to August 2016 @ 14.50.
4) Silver currently has the most upside of all the metals, and with the current market economy, could potentially realize significant gains in the next couple of months.
Bearish Key Points:
1) Let's be honest, this is a highly manipulated market. If the powers that be deem it's not going anywhere, well it just won't.
2) Weekly EMA test. Silver has not traded above the 21 EMA since June, if it can't find steam in the current market conditions, I'm not sure what else it will take to get it moving.
3) It has major tests ahead. In addition to the weekly EMA we also have two major tests within 6% of the current price.
Positions:
1) I currently hold spot silver ETF, as well as multiple future long calls.
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Thanks for reading!
For me. This a chance to buy..50 and 200 day averages nearly cross each other.
So price is there.
This a chance to buy for me
Good Luck.
Silver Likely to See a Pullback Near-TermSilver has seen an unexpected rally to most and continues to show strength as holdings of silver-backed ETFs reach all-time highs. Since posting "Potential Inflection in SLV: Price Action and Options," (under CommoditiesTrader) SLV is up almost 22 percent.
However, near-term there will be a correction to work off the overbought conditions.
The RSI was quite elevated at 77, while the z-score hit a near-term high of 2.9
The +/-DMI is showing that price action still remains positive but the ADX is beginning to tick lower.
The stochastic indicator is currently over bought at 87.51/93.26
Of course, precious metals will move with headlines. Given the sharp two-day decline, the SLV looks promising between $15.90 and $15.60. If traders sell through the secondary uptrend near $15.60, we could see further selling to $15.
It's important to remember the risk is dynamic. Traders will flock to the safe-haven aspect of silver if more troubling news surface about European banks, Brexit and, simply, slowing growth.
A correction will only be healthy going forward. The weekly chart shows at $17 is a tough nut to crack - only seeing one close above this level since January '15.
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