Markets always pray on public psychology. Unless retail got wiped hard earlier this week, I’m expecting a head fake to the upside to reel the buyers back in. An inverse HnS formation is lining up now that will provide a price target to about $351. Shy of the all time high. I am VERY cautiously short term bullish, but only as a head fake.
After a big run up, SLV looks to be cooling off by showing us chopping sideways action. This is also forming a bull flag. As long as economic indicators remain, and silver continues to get mainstream attention to a slv:gld ratio deficit, then $29-$30 should be the next target. Neutral while this plays out. Long after an upside breakout.
A miss on earnings back in July put a halt to the upside run after a technical break out of cup and handle. Spent the last month forming a bearish descending triangle. Will it go back to restest that breakout area as support? Volume looks weak and unsupportive, moving averages about to cross over. A break of the bottom support would warrant a short position.
Breaking down some of the intraday patterns here in SLV. RSI well overbought based on historical numbers. We also have a GAP to fill as seen in the previous burst. The $25.25 target also lines up with a 50% Fibonacci retracement point. Disclosure, I'm short SLV for this week.