Thursday, June 23, 2011

SLV update

 I've had a dm view of the bigger price pattern in SLV and the Dodd/Frank bill banning retail traders from trading silver/gold and other assets in OTC markets means they'll be driven to trade in a less leveraged regulated market that is subject to the COMEX margin requirement-not exactly a bullish development for silver. In any case, SLV is breaking the larger pennant today, I don't usually trust the first move on a break of support, but if it's traded with a tight stop, it may be worthwhile on a speculative basis.

Here's yesterday's break of the bearish ascending wedge-target met today and the current move below the daily pennant.

Looking at the pattern on the daily chart, there could be a significant move down. I've covered this pattern numerous times, it's more or less a large bear pennant.

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