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My friend KM makes a good point: Silver should be pulling back some. As we can see, last week's action totally blew through the Bollinger Band. This typically indicates a turning point. The decline should be swift, and result in one ore more red candles.
There is some support nearby, however, $14.00 looks like the first really strong line in the sand.
With my stop in place, I am guaranteed profit and if it does pull back, I'll re-buy with twice the position size.
Happy hunting.
mike
ReplyDeleteSilver has had the big monthly in over 20 years.
Trading the commodity ETFs are more complicated and/or multifaceted. Meaning: In order to play an etf like SLV successfully, we must know what currencies, bonds and interest rates are doing.
In my view, I expect further weakness in $USD, bonds and probable higher interest rates.
Good for commodities, not good for the long haul.
Thanks for the info.