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Spamwich
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Specialty: Technical Analysis Name: Michael Payne, CEO of No Payne Roofing Inc. Objective: To acquire a network of active market participants who share the common interest of profiting consistently. Experience: Relentless market participation since November 2011
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  • $SLV Technical Explanation : Not So Bearish Yet !  2 comments
    Jun 1, 2014 10:28 AM

    Silver has really done very little in the past year and a half, only making a lower high since last year and ranging within a $4 trading range since August in 2013, and now silver finds itself only 60 cents away from the low in 2013.

    The bullish case for silver is really riding on the "triple bounce" from the 2013 low of the $18.18 futures price, while there are other supporting indicators such as the 2010 resistance holding as support, and the oversold RSI readings on the daily-monthly time frame.

    The bearish case is riding on the break of support, $18.18 must break, a lower low, even by pennies, should be considered a big red flag indicator for the direction of silver in the long term. The lower highs are considered a bearish indication, while there is also a descending triangle formation which is forewarning of a break in support.

    At this point in time, if anyone is looking to trade the metals, take profits now from your short positions, and make new short positions on a break of support $18.18, you will have a nice long term $8 decline to the old 2008 support. If going long wait for the bounce above $18.18, remember that risk management is THE key .

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  • Gold Dog
    , contributor
    Comments (123) | Send Message
     
    Spamwich nice article. Thanks for doing it.
    Where do you think Silver is going short term with it at a higher level this week at $19.21 right now?
    I heard if it went higher Monday -Tuesday it could be on a nice Run up.
    I have no silver right now.
    I am hoping that Gold drops to form a triple bottom at $1200.
    Will Silver follow Gold or will Gold follow Silver short term?
    12 Jun, 03:02 AM Reply Like
  • Spamwich
    , contributor
    Comments (280) | Send Message
     
    Author’s reply » I find that silver is typically the leading indicator to gold.I do see a descending channel on the Weekly, with a range of 80 cents, price is now at the top of the range so assuming resistance holds it will target 18.40 ish in the next week or so. I would like to see a higher high ( Above $22.50 futures) before I start to assume that the bear run is over. If you go back to 2011, there has not been a single higher high made, so to break that trend would certainly be encouraging . I may personally enter some $25 SLV 2015 calls if we get another bounce in the $18 region, but its all talk at this time lol.
    12 Jun, 08:50 AM Reply Like
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