Here are some charts of SLW, this is a trade I suspect you could enter right now short and be fine, but I don't like chasing anything, I'd rather let the trade come to us to give us a much better entry and risk profile.
Intermediate term the silver miner should be a nice short, at some point when that ends and a reversal process sets in which may be around the same time as precious metals and Gold miners in general, SLW should make for a nice longer term trend trade LONG position, but one bridge at a time.
SLW's daily chart has a confirmed Candlestick Reversal (bearish) which is a Star with a Bearish Engulfing candle the next day a confirmation, today's higher volume sell-off creates a probability of a short term oversold event starting to play out and that's where this becomes a high probability/low risk position.
The daily 3C chart shows the last distribution cycle and stage 4 decline coming in to a rectangular base that is roughly the size of several of the gold/ gold miner bases. As you can see on this very strong daily chart, the further to the right in the stage 1 base, the stronger the positive divegrence as it should be, but it just hit the top/resistance area of the base and should come down, I suspect along the lines of GLD and GDX at which time it may make a great long entry.
Intraday after what looks like a possible short term selling climax (volume), the ROC of price died down and it's nearly moving sideways in which it can form a short term base to bounce from which
is what we need for a short sale entry, a bounce.
The 4 hour chart is very strong like the daily so I suspect the next pullback may be the last before this breaks out to the upside, but in the mean time, it looks like a decent short.
Here are the last two accumulation areas in the rectangle on a 60 min chart and you can see negative divergences as they approach resistance of the base.
The 30 min chart shows the last accumulation area (stage 1), then the run-up (stage 2) and the negative divegrence (stage 3) / distribution, this looks like a solid downside reversal and that's the short play we'd be looking to ride.
The 10 min chart with trend confirmation until resistance is hit and a leading negative divegrence, just along the same timeframes as GGDX/GLD's divergences.
The 3 min "timing" trend should be clear without any notations.
It's the 1 and 2 min intraday charts that look like a small base for a bounce is building which we can use to short in to, otherwise I prefer not chase this .
My X-Over system has a confirmed long, the price moving averages had a whiplash, but the other two indicators kept SLW a long until recently when all 3 went sell/short.
Typically after a new signal on this screen we see an initial correction to the 10 (yellow) or 22 (blue) bar moving averages, this is where I'd set price alerts, $26-$26.50 and up, that's where a bounce would reduce the risk of a short entry substantially as well as give us much better positioning.
My daily trend channel held the last short trend until the white arrow where it stopped out and held the long trend until today's red arrow , this would be on a closing basis. However, as is often the case, reversals aren't clean like this and after the Trend Channel gives a buy/sell signal, price often bounces around in the channel before moving in the direction indicated (down here).
It's this bounce that gives us an edge in SLW short, it would likely also give similar entries in SLV, maybe GLD and GDX as well for short/pullback trades, but we'd have to check that.
I'm setting price alerts, if you like this as I do because of the clean signals and the base that makes sense, I'd set price alerts as well.
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