Just when I get all poofy about some market "call", here comes Mr. Market
to deflate my bubble.
Two days ago, I wrote "Did
You Sell GLD, GDX, SLV?", and in my poofiness, I had the top in metals
correct, and based upon the recent price action, I suggested that i-Shares
Silver Trust (symbol: SLV) was vulnerable. In particular, I felt that SLV
was essentially at resistance and in the face of a weak market and declining
sponsorship (i.e., decreasing OBV), it appeared to me that SLV would test
support (at 14.78) before breaking above resistance at 15.87.
If the price action over the last two days is any guide, I am wrong! Deflaticus!
Maximus!
Figure 1 is a daily chart of the i-Shares Silver Trust (symbol: SLV) showing
prices moving above resistance (albeit on sub par volume today).
Figure 1. SLV/ daily
Of note, and by my account the weekly chart (in figure 2) has yet to turn
up. In fact, it appears that SLV is just hanging on to rising trend line support
at the 40 week moving average. In a sense, this represents a low risk entry
point from a technical analysis perspective utilizing the new level of support
(at 15.87) as either a place to buy and sell. In other words, buy near 15.87,
and sell if prices go back below this level. If SLV fails at this level of
support (15.87), then it is look out below.
Disclaimer: Guy M. Lerner is the editor and founder
of The Technical Take blog. His commentary on the financial markets
is based upon information thought to be reliable and is not meant as investment
advice. Under no circumstances does the information in his columns represent
a recommendation to buy or sell stocks. Lerner may on occasion hold positions
in the securities mentioned in his columns and on the Web site; in all instances,
all positions are fully disclosed at http://thetechnicaltakedotcom.blogspot.com/.
However, their positions may change at anytime. For more information on any
of the above, please review The Technical Take's full Terms of Use and Privacy
Policy (link below). While Lerner cannot provide investment advice or recommendations,
he invites you to send your comments to: guy@thetechnicaltake.com.
Copyright Notice: Except for making one printed
copy of this newsletter or any other materials, files or documents available
from, accessible through or published by TheTechnicalTake, LLC for your personal
use (or downloading for the same limited purpose), none of these said materials,
files and/or documents may be reproduced, republished, rebroadcast or otherwise
re-distributed without the prior expressed written permission of Guy M. Lerner.
Circle Us