Tuesday, September 27, 2011

Silver Update

Click on Chart to Enlarge

See notes on the chart. The initial target was met on the silver cash and nearest futures but the SLV etf fell short of the corresponding target by about $1.50. So SLV may consolidate above that level now, but I think it will be just part of a larger bear market.

I think that prices may form a triangular consolidation here off of yesterday's low. But after whatever rebound we get here, prices should continue lower.

On related notes watch SSRI for a short entry any time on a back test of a broken head and shoulders neck line on huge volume. Also, SLW is hovering above the neckline of a beautiful head and shoulders pattern. I would sell the breakdown of the neck line on a sell stop (~30.50) because it may not see a backtest of its neckline the way silver prices are situated.