SLV - Patiently waitingSilver has not taken out last week's high despite a spirited rally today. I lightened up some on SLV last week anticipating a three week test of the low. With quad-witching on Friday, could be lots of volatility even extending to metals. Dollar continues to be super weak.
Could be wrong and SLV can continue to move higher but I play the patterns that I know and will patiently wait to see how we are going to close on Friday. Holding at or above 21.05 would be an intermediate-term entry point and onward to the 30s.
Last year, I had been anticipating a double bottom formation with prices taking out a top just below 20. Theory says that after breaking through that top (occurring around Aug 2016), prices would come back down to test that breakout point and move much higher. The March madness in the markets caused silver to make new lows. But ignoring the March craziness, I'm am sticking with that philosophy that we did make a double bottom, have come back to test and will then move to higher prices.
That being said, previous posts showed that I had expected still lower prices and they still might occur, actually testing that breakout level around 20. But as the Stochastic indicator is now heading upward, momentum is shifting. If we wind up closing below the 21 level on Friday, a little more patience will be in order. But I think we are close. This weekly setup is important to keep an eye on and if successful, is worth placing your bets on it.
