With the holy holidays not yet out of memory, looking at the weekly chart of SLV conjures up the Crucifixion of Jesus. Actually, that candle I point below is a long-legged doji which, in this specific, case, noted extreme indecision after a parabolic move in silver over the past several months. I have written quite a few posts in recent weeks calling for a multi-month consolidation in silver after an initial leg down. I see plenty of traders anxious to pick the bottom in silver now that it is selling off hard, but I do not see a favorable long setup for anything more than a daytrade or maybe one-night hold at this point.
After piercing above the upper weekly Bollinger Band for so long, I expect at least a test of the middle band, that being the 20 period weekly moving average, which is still quite a ways below current prices.
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‘on a cross of gold”
lol
Silver is going down because of CME group’s changing (raising) margin requirements 3 times in one week.. Now there’s forced liquidation. You never really know how long that will last, but I imagine that there will be a strong rebound once the speculators and over leveraged money is flushed out. Then if it fails to recover, it will decline. My personal thoughts. all bubbles seem to result in a 50 to 90% decline from peak in the first year after it hit’s peak. I can’t imagine silver will tank independent of gold like it is right now, but I suppose it’s certainly possible.
My take is the end is near, but we will see one last rally attempt in silver. The fed’s QE is done, now I imagine it won’t be long until they start worrying about inflation. That will be bad timing for gold and silver bugs.
People calling for $600 silver are out there, lol. Sounds like “Dow 100,000” or “Nasdaq 50,000” calls during the year 1999 and 20000… oh sorry I mean 2000.
I tend to agree with you.
I seriously doubt silver and gold are going down simultaneously with the dollar.
we shall see–good pt though