Silver Looking GoodIf we get a little pullback after the big rally this week this ETF could prove to be a nice swing for next week. The ma's look good either way.
SLV trade ideas
SLV = Fave 2020 PlaySLV price action is constructive. Fib level holding with MACD and RSI looking favorable. Looks like $15.50 is the line in the sand and coincides with a solid FIB correction level. This is a weekly chart with 50 day moving up through 100 day. Volume drying up on correction phase. Impulse leg that began move up has me looking for $20 over the next three months or so as the uptrend continues.
SLV and dollar correlated?As news that the Fed will be injecting hundreds of billions more dollars into the repo market, one has to expect that an increase of the money supply surely needs to affect the price of precious metals. But looking at a comparison of SLV and the dollar show that overall, Silver and the dollar appear to be very correlated. From time to time, I look at the numbers at usdebtclock.org
Looking in the far right column, we can see that the dollar to silver ratio is $1,053 an ounce. Yet silver languishes at prices far below this. One reason is the paper to silver ratio of 201.96. Not sure that the prices of precious metals will ever reflect their true value, that is, until the fiat currency system resets or collapses. But this prospect is a key reason why buying the actual physical products make sense. Where else can a worthless piece of paper buy so much value?
SLV LONGWait for price to touch demand zone. There is a clear DBR. It is forming another flag. Flags are bullish. See prior patterns on the weekly chart. First target $17.5 to $18. MA 200 (WEEKLY) could cross MA 50 (WEEKLY). If that happens, there is a more room to go up.
SLV Long Bull flag on monthly chart Monthly Chart shows a very nice Bull Flag for SLV A long stock play can be done if I want to hang onto the stocks for a few months. The length of the flag pole shows about a $3.5 move, so an option about half way up that move with the expiration of March would also work. In fact. I'm looking at the decently16 s priced strike that expires on March 31 2020
a Debit spread can also be done if i also sell the 17 strike on the same expiration That would make the cost of the spread at the current market price $21 with a profit potential of $79
SLV - New Low for this moveHad anticipated one more move down and this needs to be it as we rapidly approach the top of Wave 1. A breach of Wave 1, in Elliott Wave theory, would negate the assumed bull move.
SLV - Time Symmetry predicts a Bottom on MondayFor a long time now, I had wondered if the apparent wave 4 needs to be as long as a wave 2. Wave 2 ran from Feb 20 to May 28, 67 trading days. Our recent wave 3 high marked on Sep 4. We are now 64 days into this correction. We should be close to an end. 67 days hits on Monday. Can't wait to see an impulsive wave. These constant smack downs have made me lose total interest but my positions stand and will be prepared to roll any 2020 positions to Jan 2021 next month.
SLV - at an inflection point?I think so. Unless my chart reading skills are off, SLV is right at an inflection point. There is a perfect FIB retracement in place and $15.74 represents an important break out/down point from 2016. Down channel resistance just begging to be taken out. Volume drying up on sell-off. MACD and RSI favorable. A little W bottom with 200 day holding us up below. If the saying is true that the miners lead the metals, WPM and PAAS have been screaming up. Feels like it's coiling, Looking for it to attack the 18.35 high and fairly quickly.
The pirate adventure resumes?ARGH, ARGH, my friends, it has been a very long a painful wait, but perhaps it is time to revisit the treasures abound in gold and silver. As you can see, there is a shimmer or GREEN on the WEEKLY chart propagated by a spark of ignition on the DAILY. Perhaps there is still hope for the X that marks the spot. However, we must tread very very carefully at first. Any sighting of an officials ship and it's time to run for the exits again, less we be captured and capsized.
SLV - One more down move left?Silver's apparent wave 4 correction has been long and boring. Might be one down draft left still. Looking at a weekly line chart and parallel channels, it's quite possible that we hit 15.42 on some weekly close in the very near future. If the channel holds, we may begin wave 5. If the channel doesn't hold, then back to the drawing board.
Silver's next stop 14.85...As the last crazy bull rampage all over, the precious metal become less precious than before. But do not let the mirage foul you, even the stocks runs high, but the profits and earning are heading south. China is also going to make more trouble along the way, which will drive the equity price higher... Than, same like the all time high of French Stock market at 1939, there's no after... Precious metal are the only stuff can retain value during trouble time.
SLV - getting close!I like the risk reward around here. Another 25-30 cents and we will fill the gap from the August breakout and we will be hovering at the 200 day. Also looking oversold on RSI. See a lot of upside potential but like all the metals trades patience is the key. Can't always catch the swing highs and lows, but we are getting close on this one! Need Mr. Market to cooperate as well.
SLV - Buy The Trend??On adage that I have followed for years is if you can buy at or below a rising trend, then over time, you can profit. SLV is at that point now, the 20 week moving average is rising. This moving average is rising 9 cents a week or in other terms, better than 0.5% per week. For those who are longer term bullish on silver, this is a good place to place or add to a position.
SLV Retracement PotentialsWhile my initial price target for SLV is around 19.55 for the current move, Fibonacci retracement lines show that even if we remain in a major bear market for silver, a 50% correction from the major down move can be expected.
SLV - Taking some money off the 2020 tableAs mentioned in previous posts, I have been in the process of rolling out my option position to 2021. As I have been adding, this is an opportunity to take a little bit off of the table from the 2020 position. Sold just enough at this point to cover the cost of my 2021 purchases made during the past couple of weeks.
