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SLV

SLV Corrective Action Complete?One can never really tell how elaborate corrective actions can be but it does appear that an impulsive move up may be what's coming next. The next major price target is the previous major high around 19.77. It's possible however that this target might not be hit until early next year. With that timeline in mind, I have been adding to 2021 LEAP call positions on the dips and liquidating 2020 calls on rallies. The stochastics indicator reading can be used as one of the tools to provide overbought/oversold readings to take action. When looking at SPX move since 2009, it's impossible to forecast how high SLV could go if we are in fact entering into a Bull Market. Most Elliott Wave scenarios I've seen suggest that the current moves for gold and silver are merely Wave B of an overall corrective pattern with more downside to eventually come. If we are in the initial phases of a Bull, the length and magnitude of the move could be substantial. With computer algorhythyms and easy money controlling the market action, only short-sightedness and impatience might be the limiting factor in your profits.
AMEX:SLVLong
by Glewis54
1
SLV Wave 4 Setting Up for move to 20Still holding an uptrending channel. Holding this level would be super positive, setting up for a wave 5 move to the top of the channel. By rule, Wave 4 cannot breach Wave 1 so while lower prices are still possible, impulse waves generally conform to the channel. As my long term outlook is for eventually testing the highs, I was buying Jan 2020 and Jan 2021 LEAP calls. Earlier write- discussed the double bottom pattern. To prove the double bottom formation, price would need to break through the last major high just under 20. My expectation was that it would pick up steam and run to fill on gap on SLV above 25.50. Not certain if gaps in SLV get filled like gaps in stocks since XAGUSD trades pretty much continuous. I was watching today to see how SLV would react to filling the gap. I was buying as that gap filled. It then rallied from their but backed down at the close of the day. So I'm thinking that gaps are valid and there may be a run to 25+ As 20 gets touched/breached, would expect some selling but also, as another poster wrote, buying above 20, a breakout level, was the strategy. As the five wave pattern completes, I'm expecting the ensuing correction to last around 3 months, possibly into next year, so I'm planning to liquidate the 2020 calls, holding on to the 2021s. Expect lots of great trading opportunities during that correction phase to build a large position in anticipation for a run to test the highs.
AMEX:SLVLong
by Glewis54
6
Silver in Wave 5 of 3?It appears that Silver has completed a wave 4 (of 3). It immediately rose to the first Fibonacci projection of 1.618 and is entertaining moving to the 2.618 level. As the Wave 2 of the next higher level took around three months to play out, I am anticipating that when this wave 5 is completed and the higher level wave 4 begins, Silver may consolidate for a similar amount of time, meaning that we may drift to the end of the year. But as wave 5s are said to often be the most explosive in commodities, it will be important to be patient as this minor wave 5 plays out as well as the wave 5 of the next higher level that could begin playing out, if my review is correct, early next year. I'm currently looking to confirm the double bottom formation. This would require breaking above the last major high of 21.14 on XAG and 19.73 in SLV.
FOREXCOM:XAGUSDLong
by Glewis54
Reasons Why I Won't Buy Silver NowSilver was definitely undervalued due to strong demand, supply deficits and the gold-silver ratio. In this chart, the blue moving line is the price of gold. We could obviously find that the gold-silver ratio has reached the highest level. So for long term view, buying silver is a really good choice. However, shall we buy the silver now or later? Here are couple reasons why i would like to buy silver later. 1. MACD: the macd of silver has reached overbrought area. In the recent 14 years, there were 8 times that silver's macd reached 4.81 level, and 6 of them dropped hard right after that. Now, the macd reached 4.81 level again. 2. RSI: the rsi of silver also reached overbrought area. In the recent 14 years, there were 7 times that silver's rsi reached 70 level, and 5 of them dropped hard right after that. Now, the rsi is moving above 72.2 level. 3. Short term trend is still bullish, but the strong resistance is around 17.32 to 17.57. It's also possible that silver moving like October 2010 in the next half year. But I prefer to wait a healthy correction before the next level breakout and it would be a good chance to buy low. (16.18 and 15.50 are strong supports. If silver break those supports, it may reach 14.90.)
COMEX:SI1!
by Nee_sh