Today look like a stalemate day b/w the Bull and the Bear. I did not buy any TZA nor SKF despite the weakening of the morning rally. Instead, I only bought EXK this morning. I like EXK now because price action did not breakdown below the base support yesterday despite a strong down day. This morning EXK opened up and took out the upper downtrend line. To me, that is good enough for me to take some position at the market open since my stops will be below the base support.
The important thing for me in taking a position is knowing where my stop loss will be. Having a strong support base, even if it is in the form of Descending Triangle, tell me that the silver buyers will be putting up a big fight to protect that base. And if they failed, that simply mean there is a strong fundamental reason for silver to go down and the price actions is telling you this BEFORE you even know what the fundamental story is about. At the same time, if you look pass the Descending Triangle, you cannot ignore the triple bottoms on the daily chart since late June. This is a very strong case for a rebound from here if price actions show some bullish signals such as taking out the upper downtrend line.
From here on, if price actions continue upward, there is a good chance we may have a runner here. And I will continue to add more accordingly.
Below is the daily EXK chart:
9.6% Long-term equity
One Response to Taking a break to enjoy the Silver(ware)
Trading journal update:
Added more EXK at open.