SLV Update

This entire Silver episode started last Wednesday August 18th with this post.


In the post I showed you a chart like this (except this one is up to date).

This is what we were looking at in the white box back then, I said in the above post,


"Here's an hourly chart of SLV in a bearish ascending wedge, most traders expect a straight drop down out of the wedge, because it is so obvious, it is likely to be gamed, so I would look for a breakout to the upside, maybe even a new local high and then a plunge in SLV, lifting ZSL. It shouldn't be long now that the wedge is so tight."


As you can see, because of the predictability of technical traders, all 3 things happened, the break out above the wedge, the breakout above local highs and the failure back below-this is a HEAD FAKE.


Yesterday in this update I showed you a chart like this.

These were the two areas of support to watch for and we had talked about a short on silver using ZSL.


Here are the current 3C charts, but now there's a head fake in place, it gives the downside more momentum as the longs are forced to sell or raise margin money.

 SLV 15 min 3C from a negative divergence to trading in line with price  or confirmation of the trend (green arrow=inline)

 SLV 5 min is more detailed, it shows the negative SLV divergence in red and confirmation in green

 The SLV 1 min chart shows a slight positive divergence, likely a slight intraday bounce or a consolidation.

 Here's the SLV short, ZSL on a 15 min timeframe showing distribution around 8/9 on a false upside breakout,  accumulation from 8/15-8/23 and is currently in a positive leading divergence-the strongest kind of divergence on an important timeframe.

 ZSL 10 min showing accumulation and trading in line with price

 ZSL 5 min with accumulation and a slight negative divergence, again indicating either a pullback or a consolidation.

The ZSL 1 min chart again showing the same. All in all, the longer timeframe charts look pretty good so I would expect more downside in SLV and upside in ZSL. GLD coming up.