Silver’s Technical Tricks
- Posted by Greg Harmon
- on February 20th, 2013
Quite often currencies and commodities trade more strictly to technical patterns than individual stocks and indexes. The recent moves in Silver, shown in the Silver ETF, $SLV, below, are no exception. Since breaking higher in mid August, Silver has been cycling through two harmonic patterns. First, a bullish Gartley completed in January with a reversal higher that came within 1 penny of Initial Price Objective (IPO) of 31.42, a 61.8% retracement of the range of the Gartley. But it turns out that this move higher was just the first leg of a bullish Crab, should it continue lower
(and it is in pre-market trading). The Potential Reversal Zone (PRZ) of the Crab starts at 27.37 and runs lower to 26.88. A break back up through that and then reversal higher carries an IPO of 29.68, or 61.8% of the Crab range. What if it does not continue lower? Well that is okay too. The pattern up until Tuesday could also be a second bullish Gartley that has already moved through the PRZ at 29.21. In this case a reversal, triggered by a move back over 29.21, would target 30.34.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Looking at Home Depot to remodel my portfolio
- Premium Earnings 7-27-15
- Top Trade Ideas for the Week July 27, 2015: Bonus Idea
- Top Trade Ideas for the Week of July 27, 2015: The Rest
- Top Trade Ideas for the Week of July 27, 2015: The Rest Premium
- Top Trade Ideas for the Week of July 27, 2015: The Best
- SPY Trends and Influencers July 25, 2015
- Macro Week in Review/Preview July 24, 2015
- How This Week’s Premium Top 10 Performed
- Global Macro Backdrop, its all about the Dollar