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Monday, March 29, 2010

Silver... Hmm

Here is a silver chart. Silver snapped back to TWO trendlines today. Silver has a habbit of trading back to trendlines before making the big move.

One of my trend indicators is in the lower end of range trading and my other is uptrending on the daily. My signal is on a buy. Basically I have to cut my position. There is two reasons why I still have my position today 1) my stop is around 17.75, which is really close to the current price, as this would violate trend lines, push my trend indicators up and change the pattern of lower highs and lower lows on a short term basis and 2) the weekly is in a range trading mode and the daily kind of is as well(hence the indicators really arent telling me there is a bullish trend here to be fearful of, "yet"), therefore given reason 1) and the fact that bearish trendlines are in tact I am going to hold.

I have a position in Silver because gold is bearish on my indicators and the dollar is bullish on my indicators and Silver was as well now its neutral. However I evaluate trades (i.e. include other influencing factors). Silver currently has lower highs and lower lows and bearish trendlines in tact. 17.75 and I am out, or SLV gets a sharp turn down and I am going to ride the roller coaster.

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