Silver Miners: Current view. Ideas on setting targets.

AMEX:SIL   Global X Silver Miners ETF
My last post on SIL was on 4/29/20 and the target I gave at this time turned out to be accurate. ( see link below).
Current view. I am still intermediate term bullish but from the daily chart you can see we are in a short term down trend. It could start up now at the midline of the daily channel, OR it could move down to close the gap, OR it could move down to retest the long term down channel line. I believe there is a good chance one of these levels will hold. Supporting this idea is that we have a positive reversal followed by a bullish divergence in the daily RSI . When this RSI pattern develops it often (but like all patterns --not always) is followed by price rising to a new high in that time frame. If you are not long already then wait for the short term downtrend line to be taken out.

Target ideas: When you get a symmetrical reversal pattern with horizontal top or bottom such as cup with handle or the inverse, or H&S or inverse head and shoulder , or a "M" or 'W" you look for a breakup that holds above the top or bottom. Then often there is a Fibonacci relation to the eventual target. I used that approach on the daily chart for the target I suggested on 4/29/20. I used that approach on the weekly chart to get the current potential target if price breaks up above the weekly cup or W pattern top. This gives potential target of 71-86.
Another way is using the RIS bullish or bearish reversals. Remember the RSI is based on the closing value. On the daily chart I determined the price difference from the close around 3/20/20 to close around 9/23. For me I just draw a box then clone it. That distance is then added to the close where the RSI was its highest (around 7/28) which gives a target of around 75.

If you are not familiar with RSI patterns see:

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