SLV — 7 entries on this page, 2 of them a change of direction.
We saw that with silver the SLV in late January and that's a sign of real froth
I want to start buying the SLV back.
I would say silver, which I just showed you uh no, GDX I showed you. Silver, let me show you Let me show you what I'm seeing in silver. Silver, there are several paths, two of which can take us lower, one of which can take us higher.
The one that takes us higher has to break back out over yesterday's high, and then take out this high. You take out this high, and I don't have a real bearish bias anymore. 7205 is the main high to take out.
But, first you have to take out yesterday's high. Until yesterday's high is taken out, folks, there are two paths that can point us lower. This is the bigger A B, which makes this wave one down of a C wave down.
The other potential I'm showing on the 5-minute is the bearish potential is that we have a wave two over a one two already in place, and this is going to be a wave one two one two setup of the downside setup.
That's why taking out yesterday's high is important right now. The more bullish alternative is that, you know, the B2 ended there, and this is a wave one. This is an expanded flat for wave two.
And, like I said, you take out yesterday's high, and that opens that up. Until then, you may, especially if the next bounce is clearly corrective, folks, you may want to remain protective cuz this could be pointing us minimally to 5315, potentially even lower. So, that's what you have to watch.
A similar story applies here to silver. We had the potential to break the head and shoulders pattern , but we didn't get away from it. We were at a lower one day, a higher one day, and a lower the following day, all within the range of the first candle, and we did not push ourselves down to the support level.
Silver's about $64. That's about half the high that it hit in February, March. Uh so I think that's a great pullback to buy.
Same thing for silver. Silver was able to get a small gain and save itself today breaking back or holding this trend line. But again, same thing, shoulder, head and shoulder. You got to hold the 6375 level on silver.
All right. And again, if these two levels break on gold and silver, the calculated target is basically back to their recent lows from earlier this year. So, you're talking about a significant move to the downside should these names break these levels.
Let's look at silver. Silver is the one chart that out of the three that I'm tracking that really is much more strongly suggestive of a potential lower low. Why is that? Well, we haven't even gotten to the 236 retracement of the prior decline.
Now, we know that silver loves to catch up at the end of the cycle, whatever cycle that it's dealing dealing with. So, it is possible that we could get a corrective pullback and then get a nice big C wave rally back towards the highs.
That's very It's really very reasonable perspective.
Next chart up, silver. Now, silver, much like on gold, has received an awful lot of interest over the past couple weeks. But, this was somewhat foreshadowed too when silver started breaking out here on August 5th from this declining trend line and then put in beautiful bullish consolidation here starting the week of August 12th.
And in a sense, resulted in a breakout. That's what should have happened with that bullish momentum gaining traction and then breaking out going to the next resistance level at 67.99.
And now that we have comfortably traded on top of that, that is now the near-term support. You can even see price pierced that level today and bounced right up. The more and more we hit that level, the weaker it will become as support.
So, if you're bullish on silver, you want to see price get away from 67.99 and not come back and hit it anytime soon. Go back up to the 72.07, this other resistance level, and start consolidating there.
That would imply we're going to go higher. Whenever you end consolidate on top of a level of support, it implies it could break to go under. Now, notice back here, you could see how this consolidation mainly took place above the trend line.
You see it and it a comfortable space above except for these 2 days in which price retrace and bounced and moved up over. I would rather prefer to see that sort of consolidation on top of the support, not with price continually hitting it throughout the consolidation which would then weaken the support.
Hopefully, you understand the differences there and they're key minor nuances, but it really does help stack probabilities in your favor whenever you're trying to analyze if there's more juice in the stock and/or commodity to push up higher on the charts or if it's starting to lose steam.
And one of the ways to do that is what I just walked you through and how price consolidates in and around support and resistance levels.
