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Shared yesterday morning that Fibonacci looked to be blocking SLV/GLD from moving higher. (see post here)
SLV is acting a little doggy since the April highs, as it is down almost 40% in value. Relative strength ratio suggested to get out of Silver in May (see post here). It appears that SLV is forming another flag/pennant pattern of late. Shared last week that ZSL looked to be a good play and so far this pattern doesn’t change it, yet while the flag continues to form, extra back and forth action should take place for a while.
Keep an eye on the CRX Index and Copper, weakness there increases the odds of Silver being soft! See updated CRX/GE2 post on Dshort(See post here)
shah…see link below per Silver support.
https://www.kimblechartingsolutions.com/2011/09/silver-hits-intermediate-support-zsl-up-over-80-in-a-week/
Sir ,
Thank you for your reply . My question arises with the new flag pattern mentioned . i know it would quite sound stupid but is it possible that would it go below 0% fibonacci since you are short . I think it has broken the flag pattern and made high of 31.38 dollar . whats your view now ?
shah…Thanks for your viewership…we are short silver from its 23% fib resistance level
Thanks for taking the time Chris – this makes lot of sense
Respected sir ,
I have just started viewing you blog 2 days back and its just awesome . according to the pattern silver is now trading at
31.30 . and guess according to the chart a break up is here . Am i right ?
Carl… I started sharing back in May that the patterns in the stock and commodity markets were reflecting a high potential of a GE2 (great escape 2) taking place.
GE1 (2007/08 decline) could be defined as a time when people just wanted to get out of everything…hence the great escape. In early May the worlds stocks markets all looked the same, creating bearish rising wedges. In 2008, stocks led commodities down. As stocks fell, investors were forced to sell their winners…notice towards the end of the decline from Jan of 2009 to around March of 2009, stocks and TLT fell together. Why? I suspect investors towards the end were forced to sell winners.
The Shanghai flag breakdown in May started the global GOOH process (get out of here). If the Shanghai breaks below its current crossroads of support, more of the GOOH process (get out of here) will continue and be more pronounced than the action from May to now.
Hi Chris, indeed this is a striking similarity with 2008. but the big question might be: if the commodities do crash from now, will we see an accompanying stock markets crash as well, or the opposite?? what is your view on that? Thank you again for sharing all this work with the community!