Shared last week that SLV looked to be creating a “Double Top” at key resistance in the chart below and that if you are interested in scoring on defense, this was a good price point to short Silver or pick up some ZSL. (see post here)
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Three weeks ago I ask, “Is a 40% gain in 2 days enough” as investors who bought ZSL were up more than 40% in 2 days, as SLV broke below is flag support line (see post here) Below is an update on Silver, reflecting what looks like another break of support on a flag pattern…
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Today is long from over with, yet early this morning Silver is breaking below support of another flag/pennant pattern! For those that took positions last week to score on defense by owning ZSL, this breakdown should be beneficial.
Earlier in the week Freeport McMoran (FCX) looked to be up against key resistance. (See post here) Last couple of days FCX has reflected relative weakness, by either not moving as high during rallies or falling more during declines. Continue to keep a close on Doc Copper/FCX for leading stock market clues!
Thanks Chris for your reply and I see that you updated charts on GOLD. Appreciate it.
I understand that you may have a lot of emails and back log. I will look forward to hearing from you soon about the membership.
Have a great day!
And by the way, you are doing a great job. The charts are fantastic and you have been spot on!
Chad…Last month it was $27, now this support comes in around $29. (see Silver support here)
What technical resistance should we look for on the bottom of silver? For those of us reading this blog too late and looking at $31.50/silver, do you see more room to accumulate profit on a short Silver position?
Yogi… Will Gold follow Silver? I lean more towards Silver follows Gold in the longer term. I prefer to play Silver due to more standard deviation/percentage movements. We owned ZSL last month, it rallied almost 80% in a week, couldn’t have made that per shorting Gold.
Gold remains inside of a quality rising channel. I don’t know if it will get to the bottom of the channel (which is around $1,500), should it reach this support, I would be interested in picking some up on support.
I am way behind on the Premium responses to you and others and I am sorry for this. Got way behind due to the passing of my father and still attempting to dig out. I have not forgotten about you or others along this line.
Chris
Hi Chris,
This is a great chart of Silver, will Gold follow the same or similar pattern. As in, are all commodities looking a little bearish according to the Power of Pattern?
Thanks,
Yogesh
P.S please let me know about your premium membership when you get a chance.
As I shared in the post, this chart was done early this morning so Silver/SLV could look a ton different by the end of the day. For those that shorted Silver a week ago, they have a little gains at this time.
Key remains that the Dollar is testing ultra-important resistance and strong resistance (see key resistance here)
Thank you Chris.