Quick Silver Follow Up

Just as we expected a gold/GLD pullback, earlier this week on Wednesday, Precious Metals: Silver was posted which also made the case for a gold pullback as well.

SLV is down nearly 1% this morning. I thought I'd update the charts as there are a few really nice ones showing among other things, a clear change in character in 3C as well as the 4 stages of a trend (mini).

 This 10 min chart may not be as detailed as some of the shorter timefranes, but these longer trend charts are often very useful for spotting a basic change in character which usually leads to a change in trend. In this case I'm talking about a shorter term, swing trade-plus like trend, but the concepts are all the same.

Again, I didn't draw on the chart because I think the divergence from in line to negative is fairly clear.


 As for the 4 cycles or stages of a trend, again I haven't drawn the normal divergences on this more detailed 5 min chart, but the first (white) is stage 1 accumulation, the second (green) is stage 2 mark-up and red is stage 3 distribution. With a pullback, we'd technically be in stage 4 decline, but just like GLD, SLV also looks interesting on a longer term basis, although silver has been so manipulated over the last several years, it's not my favorite asset, but we'll see what it looks like on a pullback.

And on a 2 min chart, you can see not only the divergence, but the price change in character from a smooth mark-up to a more parabolic increased upside ROC in price to the trend starting to roll over.