Today's EchoVector Pivot Point Chart And Analysis: Silver

Jul.31.13 | About: iShares Silver (SLV)

Along with gold, silver's dramatic price drop has been in the news this year, and recently many articles have started to appear suggesting that a potential bounce in silver prices may now be coming.

In this regard, today is a very timely day for a review of the annual silver price chart from an Echovector Price Analysis Perspective for the occurrence of possible annual price symmetries that may be forming, and these formation's trading implications.

In this analysis I will focus on a daily action price chart of the SLV ETF as our price chart proxy for silver metals market price action.

Click to enlarge
(Click to enlarge)

(Left click on image of chart to open image in new tab. Right click on image opened in new tab to further zoom EchoVector Analysis chart image illustrations and highlights.)

Looking at the chart above, we can see a very significant and clear symmetry emerging in the key active echovector running from this year's current low (about a month ago) on Thursday June 27, and the low from its corresponding echo-back-date one year earlier on Thursday June 28, 2012.

The trade price box that followed which is highlighted in green and continues until silver's price 'breaks out' last August 20th, appears to be forming again this year, and in remarkable coordination with last year thus far.

This detected echovector price symmetry presents a potentially interesting swing trade assessment opportunity starting this week, which goes to the beginning of August and on to August's significant 3RD Saturday options expiration date as well.

From there we note silver's strong price up-draft occurred last year and lasted well into mid-September.

This price activity last year might seem particularly compelling and suggestive from a echovector pivot point analysis point of view, especially regarding silver's price outlook this next month, and then further into the fall, and its potential swing trade opportunities during these time periods.

The more astute analysts will likely focus on silver's price action within the green highlighted time-price box depicted on the chart for this year, especially if silver's price action going forward stays above the ascending green echo-price support vector that corresponds to last year's similar green price support vector within last year's corresponding green box and time-frame.

Thanks. And good luck in your silver investing and trading!

Disclosure: I am long SLV. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. I have a current small swing trading position in SLV opened Friday. I may be looking to possibly add to that position as this week and next month progress.