SLV False Breakdown Confirmed
October 1, 2021
While it could still change in the future, sure enough my post yesterday suggesting the best bet is to always assume support and resistance will hold, was right on track. I will re-post the chart today, not to toot my own horn because lately there has been nothing to celebrate, but to show in real time how that rule comes into play. Today we are now back above the “breakdown”, proving its best to consider support and resistance as areas, rather than definitive lines in the sand.
Before I post the WEEKLY SLV chart again, I have a couple items of interest. First, over at KingWorldNews we have a short article directly addressing the silver miners and their recent beatings that you should consider. Can it get much worse, and if not, then what is the proper bet? I say higher, especially when we are seeing “historic” selling. We should ask ourselves WHO is doing all this selling, considering most investors have been running scared and selling for over a year now? Could they be pushing SILJ as low as possible to cover the shorts they use to steer prices lower, just before they do heavy buying to cover the shorts and go long the etf at the same time? My guess is YES, that is probably what is happening and we will know soon enough if I am correct. I did buy some more SILJ this morning with these thoughts in mind.
Another interesting occurrence is that the WallStreetSilver thread over at Reddit has caught fire with the number of new members joining each day now. We are seeing 2-3K new subs each day this week, after months of only 50 new members per day, if that. I will let you draw your own conclusion, but I can’t see how this is bad for silver!
Now, let’s go check on that SLV chart, we are looking at the hammer that formed on the last bar, which is this week…
Turns out the breakdown so far has turned into a reversal back higher, because the best bet is support and resistance will hold.