Dec 04 Silver

[DaveT]

Hi folks.

Dec 04 Silver could be a good long-term position trade. Signs of bottoming are apparant.

Note particularly thee MACD + SLOW STOCH simultanoeus crossing a few sessions ago :

ie( MACD crossed above siganl line from below 0, AND SLOW STOCHASTIC crossed above 20)

cOMMENTS?

 

[bgold]

Hi folks.

Dec 04 Silver could be a good long-term position trade. Signs of bottoming are apparant.

Note particularly thee MACD + SLOW STOCH simultanoeus crossing a few sessions ago :

ie( MACD crossed above siganl line from below 0, AND SLOW STOCHASTIC crossed above 20)

cOMMENTS?

I would agree that silver may be a good trade. Well, I should say that as I am long July silver. Whether it is a long term trade, I am not so sure. I suspect we are in for a bounce (see chart). The sell-off from highs was very violent and i doubt we will be seeing new highs anytime soon. That doesn't mean that "this" leg up can't be substantial. Under ellliott wave counts, it can be argued that this is leg B up which could see prices back up in 6.60-7.30 range. Could be a great trade!
In terms of time, I would stick to the most liquid contract (eg July SI N4)

Thanks for posting your chart. As you know I have been following the analysis for a while and do agree that it gives quite good signals. Even more reason for me to be bullish on silver! Fingers crossed!