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Time To Polish Some Silver
22

Time To Polish Some Silver

by The MoleNovember 28, 2016

Like it or not, we are heading straight into the Christmas season and soon it’ll time polish our silverware. Which incidentally has lost quite a bit of its luster over the past few years and it’ll take a lot more than toothpaste and elbow grease to regain its former glory. Over the last year a valiant attempt to turn a long term down trend came to a halt near the upper 25-month Bollinger early last summer after which silver reversed over 50% of what it had gained in the first half of the year.

2016-11-28_silver_lt

However I believe it’s time to start paying attention again for two reasons: First the weekly Bollingers are increasingly tightening and secondly silver is now in the process of testing its 100-week SMA as well as 25-month SMA. On the monthly panel we are also starting to accumulate Net-Line Sell Lines, which until breached may offer us support. Of course if silver closes below 16.195 this month or the next then it’s quite possible that we will see it challenge 15 or lower.

2016-11-28_silver_setup

The hourly panel right now shows us a spike low near the accumulation of longer term support. We also just rolled over into the March contract which aids our cause quite a bit. The most bearish panel by the way is the daily in that it has been scraping the lower 100-day Bollinger and has the potential to launch a strong trend toward the downside.

Long At Technical Inflection Point

All that means to me is that silver is currently at an inflection point. Either it can muster the strength for a bounce or it’s back on Santa’s naughty list. I decided to take out half an R here with an ISL below 16.2 and if you decide to follow this campaign I encourage you to be conservative with your stop.

More futures setups below the fold for my intrepid subs:

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About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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  • ridingwaves

    I’m in GC, Silver is as you say….sitting on the green money line…..Joined you on that trade as December is usually a good delivery mos for both GC and SI-would be nice to see price momo cross over
    https://s12.postimg.org/6l55n46yl/112516_Silver.png

  • AcoBrasil

    Thanks for the heads up. I picked up some SLW today after reading this and seeing the two big gap fills on the 1 year chart. Looks like we are seeing at least some short-term rotation from small caps into commodities.

  • ridingwaves

    I only see one one from 10-3 to 10-4, where is the other one..

  • AcoBrasil

    I was looking at the fills – April 18-19 June 2-3

  • ridingwaves

    got it, that 11-14 candle covered april….cool…cheers and good trading to ya

  • AcoBrasil

    You too. VALE looks ripe for a pullback if you have an options account to short (I don’t).

  • AcoBrasil

    I like GPL’s balance sheet and EPS turnaround. Why was it halted?

  • ridingwaves

    I don’t know, buyout possibility….think it could lead juniors if it gets its groove on….kind of a cup and handle pattern maturing..

  • AcoBrasil

    Very nice looking chart, indeed. Thanks for the heads up.

  • ridingwaves

    oil starting to add to AcoBrasil sector rotation idea below, opex meeting 30th is for all the cards…

  • https://evilspeculator.com Sir Mole III
  • https://evilspeculator.com Sir Mole III

    Slow here today! Where’s my crew?

  • ridingwaves

    AVXL breakout possible, shorts could be in trouble above dotted line…more eyeballs on this now with Lilley’s Alzheimer drug failed last week….plus news today, or its going to reject it…L stop at 4.00
    https://s11.postimg.org/9m7kpj4r7/avxl_breakout_short_beat_down.png

  • ridingwaves

    here! hi ho silver.. a strong close bodes well but strength thru end of mos needed.
    widowmaker waking up with smile today also plays into rotation…

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • AcoBrasil

    Looks like “hope” wasn’t enough to prop CL for more than a day.

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • https://evilspeculator.com Sir Mole III

    gold can’t find a bid either – like I suggested a few posts ago, it’s fighting the gravity imposed by a rising Dollar.

  • AcoBrasil

    VIX spot is also taking its precious time in arriving at the 10s.

  • http://ibergamot.blogspot.com/ i Bergamot

    if spoos don’t find support at 99’s – this whole thing will collapse thru a pyramid of stops

  • AcoBrasil

    $RUT is putting up a hell of a fight. Its not easy to let go.

  • AcoBrasil

    Stopped out of TZA at a small gain.