SLV UPDATE

Yesterday was another failed test for SLV holding the line in the sand at $30, some of you may have chosen to trade SLV for a quick move, after all, failed moves or false breakouts can turn around pretty fast in the other direction and that's what we are seeing this morning in SLV.

Here are yesterday's posts on SLV and the deteriorating condition.

Post 1
Post 2
Post 3


As you can see the level of $30 that we have identified as the line in the sand is the correct level. One it's shown good resistance and solid fights at that level and two the human mind gravitates toward whole numbers so $30 is a natural area for people to place importance on. As always, please remember that support and resistance are AREAS not EXACT Numbers, many technicians fail to understand what creates support and resistance, it's the same as what moves the market, FEAR and GREED and neither care about an exact number, this is why we see moves above $30 that fail or moves fail at $29.99 or $29.85, still the area is $30 and this morning we have confirmation that the Silver vigilantes trying to take down JPM's short are now selling at a loss after buying above $30.

5 min 3C chart showing a negative divergence at the failed breakout from the triangle, tis is just before I posted link #1, the failed breakout is link #2. In the white box you can see an attempt to cling to support at the end of the day, it failed and we are now seeing a pretty good move down as those who bought yesterday are selling at a loss-fight another day I guess.

SLV is a long trade I believe can work, but as I have maintained, it NEEDS to hold $30 and it hasn't been able to do that.