SLV:GLD Bounced On Its Long Term Up Trend Line
In my last post about SLV:GLD, I mentioned that the pair broke down it's long term up trend line. In the past few days, the pair bounced off a little bit. Because the trend line is rising, so currently it sitll within the support "zone", an narrow band centered by the trend line. Although I'm still bearish with this pair, traders want to monitor its behavior closely around the key support zone. I shall repeat that
- Technicals reflect fundamentals, not the other way around, and
- Key support and resistance do know mean the price will reverse its course when hitting them. It only means that they are important technical levels that attract more attention and traders want to monitor the price action at these key levels.
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