Shared last week that Silver ETF (SLV) had created a flag/pennant pattern and On-Balance-Volume (OBV) was breaking support. (See post here)
The Dual chart below reflects that Copper Producer (FCX) and Silver ETF (SLV) have both created bearish patterns and are kissing the underside of important support lines.
CLICK ON CHART TO ENLARGE
Copper producer Freeport McMoran (FCX) and Silver ETF (SLV) are both facing very important resistance tests this morning, within bearish looking patterns. If this resistance hold, these patterns are sending just as important of a message as the news coming out of Europe. Large declines more often than not take place when a product fails to break above resistance…. FCX finds itself right now, at the same level where a waterfall pattern took place in 2008…even though the broad market was up on Friday, FCX was down!
Keep a close eye on this leading indicator as FCX and SLV NEED TO HOLD NOW!
Patterns suggested 10 days ago to “listen” to the message being sent from the Commodity Arena (CRB/CRX). Shared back in May the foundation for another Great Escape was at hand (see post here)
The message investors should be open minded to hearing…..GE2 (Great Escape 2) could be at hand!
Chris – GE2 or not your charts are great and extremely useful for risk management. I am not a Buffet type investor (stock picker), but I think his rule 1 of not losing capital is most important. As you have stated there will always be more opportunities if one is missed but lost capital is hard to recover. If GE2 does occur perhaps it was meant to be and will be best for the long term. If holding short etfs in this case beware of counter-party risk of default – I would exit before the bottom.
cjk… I would love to have eggs on my face or even an omlet, when it comes to the GE2 discussion. Back in May I did a series of posts with a similar theme… Protect you ass-ets!
Look alikes/Dominoes/Slipper Slides, Great Escape and the Shoe Box indicator, have suggested in a variety of ways, that back in May was a time to become protectionary of ones capital.
I remain of the opinion with the help of the Power of the Pattern we can enlarge our portfolios regardless of market direction, we can win the trading battle, yet I still remain concerned on global picture per the impact/effects if GE2 does take place. We can win the trading battle, yet find the macro war a little frustrating!
Downstream I would love for viewers to say, “Chris you really blew it per the GE2 story, it didn’t come close to coming true!” I would love for this outcome!!!
Chris
Barcelona…If SLV does continue to slide, odds would increase SLW would be put under pressure. Speaking of SLW, it did well yesterday even though SLV was soft!
ge2 whiz!
Hi Chris,
Nice call once again.
Both SLV and FCX look very weak today
Aaron
I don’t think SLV retraces back to 32. The dollar may be on a nice move higher, but for a good bit of this dollar move, the metals have hung in there quite well. The fundamental driver for metals hasn’t changed and regardless of what the talking heads say, metals are not overowned by average Americans. They are talked about a lot, but few actually hold positions.
Hola Senior Kimble!
Thanks for following up on my last question. You forgot to forward premium membership information. Love your analysis!
You mention that SLV and FCX are breaking down in today’s post. You also referenced SLW a few days ago and that it was in a bear pattern. If SLV slides, do you still foresee the same action for SLW? Muchos gracias!