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SILVER SLV Overbought at Resistance

SLV (Silver ETF) is at the top of a resistance zone while overbought & with potential divergences in place (on the daily time frame, this is a 2-day period chart).

SLV 2-day period July 1st

SLV 2-day period July 1st

$SILVER (spot silver prices) closed right around the key 18.80-19.00 resistance level yesterday while also very overbought & with potential (although not yet confirmed) negative divergences forming with both the MACD & RSI making lower highs while silver prices make higher highs. Although the longer-term outlook for silver remains clearly bullish, the odds for a reaction (pullback and/or consolidation) at this time are quite elevated.

$SILVER daily June 30th close

$SILVER daily June 30th close

While we don't have any sell signals as of yet, I will be on the lookout for any time of bearish reversal such as a 2-day candlestick pattern, a bearish engulfing candlestick & move back below yesterday's highs in SLV, etc... for a possible short entry on silver and/or the gold & silver mining stocks (as I had recently highlight the fact that GDX is also at significant resistance with the charts also reflecting a likely correction).

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Jul 1, 2016 10:26am|Categories: Gold & Commodities|Tags: , |4 Comments

4 Comments

  1. lee1 July 1, 2016 10:55 am at 10:55 am

    I think shorting any asset class in this market is asking for trouble

    1+

  2. lee1 July 1, 2016 12:18 pm at 12:18 pm

    hoping for pullback but looks like silver about to rocket to the moon

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  3. lee1 July 1, 2016 1:53 pm at 1:53 pm

    bye bye silver

    1+

  4. lee1 July 1, 2016 3:57 pm at 3:57 pm

    Boom. Not sure these resistance lines mean much.

    1+

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