Sunday, April 25, 2010

Silver Up To Date

Hello people,

Allow me to update my silver trend follower. This week brought another trend change in my optimized follower. This time we were presented with a new buy signal, after the sell call caused by last week's sell off.

The daily chart looks like this:


For the second time in a row my trend follower acted last week as a trailing stop. However, this week provided us a new buy call and friday's candle looks pretty good in the chart. In spite the MACD is still red and the stochastic oscillator is still in a sell, the RSI has no negative divergence with the prices, so I feel like this coming week may be very good for longs (longs...not bulls! Some months ago I gave up on seeing the market as a "bull vs bears battle"...for me there's only one thing now: trend following! I don't care if prices go up or go down, as long as I can identify those moves as a trend).


The weekly chart currently also looks pretty fine for longs:


Weekly speaking, silver is rising from a MACD buy cross condition. The past has shown us that this crosses are very reliable and so the probability of success is very high right now. Who didn't buy silver yet is still on time to make a move. The stochastic oscillator is still on buy mode and the RSI, with no negative divergence, has yet some room to allow a strong move up for the next weeks. The one and only thing worrying me here is the low volume of last weeks.


That's all for today.
Trade safely!

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