Monday, May 17, 2010

Silver: make or break

Hi fellows,

It's been long days since last update! Allow me to do a little update on silver through the SLV ETF chart that I'm stocking:

Silver hit new highs last 13th of May, but closed that day losing some points. Right now, and since that high (19.44), SLV is correcting, probably looking to close the last open gap at 18.29, but let's hope it doesn't correct that much!

I'm watching right now for the 38.2% retracement level (18,40), so I hope that today was the last day for this correction. This would be around 50% of the time of the last 6-amazing-day uptrend...

If the 38.2% doesn't hold, the 50% retracement will be the next support zone (18.1). For this week, the 18th and 19th days may be the most important ones (just a feeling like that 12th of May).

Technicals are a little bit weak, showing topping action and this is also seen in the weekly chart. But let's see how the week goes for silver...

See you soon,