Not So Fast!
Not So Fast!
Silver longs are yet again being stomped on – of course I expected this to happen last week (look it up). What I did not expect was that it would happen so soon. After three happy thoughts inducing days we dropped like a rock right at the 38.2% fib line.
Yo – give a brother a chance to get loaded up!
If that prior low gets taken out you can expect the ZeroEdge crowd to start panicking – I myself would love to watch that in real time while inserting some obligatory ‘told ya so’ junk point magnets.
Anyway, if you enjoy the chart above you’re going to love the next one:
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Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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So, what’s notable is that today’s net-lines sell level is not too far away at 33.06. But what’s really interesting is that tomorrow’s NLSL just so happens to be 35.19, which we already touched today. So, suffice to say that we are going to see some vary interesting moves in silver before the week is over.
If you are already positioned – good for you – there’s nothing to do right now but to sit and wait (in eager anticipation). If you are not positioned yet (i.e. yours truly) then a breach of the next NLSL tomorrow is the way to go short. If you are a less risk averse trader you can also wait for a little rip higher today and keep a stop near today’s highs. A bit too much risk for me personally unless we retrace most of today’s drop.
All in all we are looking at a promising setup developing here. If we indeed get that NLS signal then my target zone would be around 31. Frankly it could drop a lot lower but we wouldn’t want to get too greedy and get out while the getting is good.
UPDATE 2:25pm EDT:
Interesting move in the EUR/USD as well today:
As you can see we dropped through our current NLSL and are already very near my first preliminary target of 1.41. However, it may pay to keep a few lottery tickets for a ride down to 1.39.
Cheers,
Mole
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