Silver Update

I was just emailing a few members over the weekend about questions regarding SLV. It looked like SLV was setting up for some kind of a pullback. I had also warned that the trade is getting too obvious and soon there will be a heavy shakeout. The two pullback points are the usual two as you'll see below.

The daily candlesticks show a reversal pattern with confirmation, reversal just means the up move will be halted, it doesn't mean a downtrend will start, it can be several forms of correction.

 3C showing a divergence at the highs Friday and a triangle formed which broke.

As usual the typical pullback is to the 10-day (yellow) or 22 day moving average. Since it's been awhile since a deeper correction, my guess would be the 22 day. There's also a nasty RSI divergence, this may be the shake out I mentioned in the emails as the trade is too obvious.