AMEX:SLV ISHARES SILVER TRUST
The time cycle on the chart is weekly. The one hour and four hour charts are more positive - but never trade a 4 hour chart when charts of longer duration tell you differently. In part 1 for SLV I said there were other indicators I used to determine the weakness. The above chart is extremely weak. To help you understand why, here they are, "Don's Top Ten Technicals": 1. The is FALLING relative to structure to the left. 2. Prices are trading BELOW the cloud. 3. Prices are trading BELOW the thick red Conversion line. 4. The thick red conversion line is marching LOWER. 5. The thick black line is the Ki jun-Sen baseline of the and this is DOWN. 6. The indicator on the top of the page is / , and this is over-bought yet there is no upward price change of trend. 7. The top-side middle indicator is vortex and this is neutral (green over red). I call it neutral because there has been no change in trend from down. 8. The Top (bar-type) indicator measures the "phase energy" of SLV , and this is WEAK. 9. The red fractal arrows are DOWN. 10. Look to the far lower right on the chart, around $14.62. You will notice a yellowish line on top (lips), with black dots below (teeth), and a blue line (jaw) below the black dots. Now, all three are CLOSED, correct? This is where I ask you to use your imagination and envision these three items as the "jaws of a sleeping alligator, and the alligator will wake up eventually". When the alligator wakes up "Don's Top Ten Technicals" (indicators) suggest he will "feed" lower.This is a negative indication of a continued downtrend. I believe SLV will continue to do go lower until the confluence of technicals tells me differently. This is Part 2 of 2 in this series. It has been my intent that after you view SLV you will be able to tell when the patterns are . One more note: there was a similar trend that I wrote about two weeks ago for Deutsche Bank. This down-trended from above $150.00 to $15.00 !! Yes, a 90% decline. Those that thought that DB was cheap at $100 have got to just love it at $15. My suggestion - make SLV prove it reverses before you risk your hard-earned pesos (I mean hard-earned Deutschmarks or green-backs). I hope this has been helpful, entertaining, and informative. Yours for better trading, Don.