SLV Follow Up

Earlier today I posted this update which included an excerpt from last Wednesday's update of what to expect from SLV, one was to break out to the upside of the bearish ascending wedge, 2) was to post a local new high, both of which happened, finally the reversal, which it seems is underway now.

Just as UBS is calling for $50 silver, silver starts falling, potentially giving UBS demand to sell in to. I never trust anything these investment banks put out and that was the point of my post last night that was centered around a member's question re: all the hype and expectations that have been created about the Jackson Hole meeting this Friday.

Here are the updated SLV/ZSL charts.

 3C 15 min chart incl. the wedge talked about last week, note the negative divergence once SLV did what I thought it would do.

 SLV 5 min negative divergence, the gap was not filled which is bearish, there's also a leading negative position in 3C.

 1 min 3C chart SLV- This one is also leading negative.

 Here is the local new highs I mentioned last week plus the breakout above the ascending wedge, which is the exact opposite of what technical traders would expect, when a technical pattern fails, they take the other side of the trade, meaning they went long SLV, that is why we see these head fakes, it creates bull and bear traps and snowballs price. Look for two significant levels of support to be broken, the local new highs around $41.20, which I believe are being tested now and then the apex of the wedge around $39.90-$40.00

 Don't forget the strength I showed you last week in ZSL through MoneyStream (Daily)

 60 min

 15 min

 3C positive 10 min leading

 3C positive 5 min leading

3C positive 1 min leading.

Usually the rule of thumb is a wedge will retrace its base, meaning the general target for SLV will be at least $36.00