The SLV ETF continues to trade in near vertical fashion well into the RSI ‘powerzone’. RSI is near the 83 range and the SLV still pushes higher. Anytime the RSI is so ‘high’ there is always the risk of a very sharp downward pullback. So it is a bit of an art to figure out when something is close to topping out.
My take is that SLV is not currently topped out quite yet. It think it still has another 1 to 3 weeks of juice left in it.
Having said that if I was in SLV from the lows, I would be looking to scale out when/if the SLV gets near the 47 range. There is a possibility that the SLV will blast above the 50 range first for a brief period and only thereafter start a sharp correction down back under 50. This would be similar to what occurred with the gold price at 850.
But the 47 range is where I see top channel resistance start to come in and max resistance is near the 50 range.
Upside momentum is clearly in favor now and is likely to continue a bit longer. I do not see any major divergences yet that say a big drop is coming. But it will come eventually and likely when hitting top boundary resistance channels.
The red line is the max price move up I can see happening in SLV in the weeks ahead.. But it is a bit of a gamble hoping for such a high to be reached.
i like it.
thanks
The Dollar hit support today at the previous low in November 2009.If we bounce tomorrow it could stop the silver bullet train, at least temporarily.
Excellent point ed… but sometimes I have seen the US Dollar index just swing right through a interim swing point and go to the ultimate one..but one would think there should be some type of stall here at least.
But we just Broke BELOW 09 Low..
I think general market is Pulling back from Today’s High.
I am planning on buying more silver Next week if it dips