SIL trade ideas
Silver Miners Setting up for Big Bullish MoveMarkets are correlated. US equities have been staving off another major decline for the last few months, and conversely, precious metals--although impacted by a rising dollar--remain long-term bullish. We can see a nice wedge-type formation here of bullish implications. It's full target is about 40% above current prices, but then full targets are not necessarily reached. Strategy is to go long on break of trend line...this will likely take a while to play out given the chart shown is weekly.
Wyckoff accumulation on $SILThe capitulation volume (noted with arrows) got absorbed with very little price decline and the market moved strongly moved higher the following weeks. Very likely this is the start of new trend - caught early. Regardless, It is certainly an amazing RR trade, cut if a weekly candle closes below 29. Safer to wait for trend confirmation but will dramatically change risk/reward.
$SIL 36.53, looks like double bottom to me, stop 34Silver Miner ETF, 36.53, looks like double bottom to me, stop if trend changed
Changiny my view of the precious metals miners. With what looks like a reversal in the US dollar yesterday I am reevaluating my view of the miners.In both the GDX and the SIL there has been a .62 correction and the shorter term down trend lines have been broken.
There has also been a "measured move" down indicated by the down arrows. Although we have a negative reversal in the RSI, the RSI has jumped up and held in the >50 range where it often stays during advances.
These observations lead me to think the correction is most likely over with more up move to come as the dollar falls.
