This weeks quiz ask “what would you do at (2)” in the chart below. Thanks again for all of the quality responses from around the world. After seeing the pattern many of you suggested that it looked liked a good chance to score on defense, with a stop. See below for the quiz and what answer I shared with those that responded, on the day of the quiz.
CLICK ON CHART TO ENLARGE
Below are my thoughts of what a person could do with this pattern at hand…
CLICK ON CHART TO ENLARGE
Silver fell 3.21% on Friday the 26th, the first day after the quiz. Not a bad first day start for ZSL as it made over 5% the first day of ownership. Keep a trailing stop of 5% on this position.
Doug…for those that acted when the quiz was announced and step the stops, should be in your shoes, per no loss! With the dollar looking to take a breather (my opinion, due to the charts) I am not real kean on jumping on the inverse right now.
As I shared last week in the gold post, per a “potential right shoulder” could be at hand, odds didn’t favor my read, due to the “trend” was still up. That is why Doug I set such a tight stop. Either we were going to get a big gain or a small nick. As you and everyone knows, I will be wrong, I just do all I can to “not be wrong for long.” If we don’t lose much, we don’t have to find ourselves attempting to make up from losses!
I didn’t lose anything on the trade! Does it look like a re-entry could be coming or is SLV too strong now?
Doug,
was stopped out by the trailing stop. I added a 5% trailing stop at the time of the purchase, per the quiz on Wednesday. ZSL made over 5% on Friday. Depending when some picked it up on Wednesday, some were stopped out yesterday on ZSL’s decline, others very early this morning.
I shared that a possible right shoulder was forming in GLD. Shared that the odds didn’t favor my read since the trend was up. I put a very tight stop on DZZ due to the low chances in this post…
https://www.kimblechartingsolutions.com/2010/11/gold-potential-bearish-pattern-at-hand/
Still holding ZSL Chris, or were you stopped out?
John,
I do use log charts, have for 15 years….couple of thougths. On long-term charts, 10 years plus, non-log doesn’t work. Also it seems that key turning ponts fit on log chart and the majority of charts I see are log, so if the majority of the monies are using or guided by log, that is what I want to use.
Chris –
Is that a bullish ascending triangle forming on SLV as of today (Nov 29th), or am I not seeing it correctly ? I am looking at the SLV on a non-logarithmic chart. It seems you use log charts a great deal, any reason why ?