Hi Ho Silver, Away!?

• Posted by Greg Harmon
• on May 14th, 2015

I grew up with The Lone Ranger. the one above, not the crappy remake with Johnny Depp looking like a crazy man. He was a hero. Always fighting for good. And after every act of bravery and kindness he would do the same thing. Pull back on the reigns and his horse Silver would rear up. Then he would cry out ” Hi Ho Silver, Away!” and be off.

We might need The Lone Ranger to perform that same cry out this week, but for another Silver. The shiny metal is trying to break out of a nearly 8 month base. Shall we start the casting process now?

The chart above shows the Silver ETF ($SLV) price since September 2014. On the surface it looks promising for a move higher. The price is at resistance, from a higher low than in April. The RSI is rising along with the MACD and the Bollinger Bands® are opening higher.

But those same signals give some warnings signals that the current move may be about to reverse. That RSI is at the point it has reversed the last 3 times. The price gapped higher and out of the Bollinger Bands to get where it is. It printed an Evening Star candlestick, an omen for a reversal if confirmed. And it has stalled on a break of the lower half of the resistance zone, while in the upper half several times.

This latest move may stick. And you might see Silver drive higher. But I will wait for confirmation. Until The Lone Ranger sees the price actually move over 16.80, before I scream “Hi Ho Silver, Away!”

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