SLV — 4 entries on this page, 1 of them a change of direction.
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.
