20.36 strong resistance. Count is I II of Wave 3. Likely resistance will be gapped up over in the morning. Silver futures not moving up much so far. 20.80 , close was 20.30, perhaps a 50 cent gap up. Crazy
I just noticed there is double support at 19.83. This was an open gap which got filled. It is also support of a trendline, and it has touched it 3 times. I believe the 19.83 is the number which must hold.
The wave down, W 2, was so long time wise I expect the W4 to be fairly short . . . rule of alternation, so W 3 4 and 5 could run up pretty quickly ... 22.50 / 22.60 ish by Tuesday of next week. All depends on 20.00 holding so we keep our higher low, otherwise we go looking for dj s gaps
Thanks, cowboy. As to projections, there are still 2 other gaps that need to be filled 18.89 and 17.78, and both are 23 cent gaps. I believe there may be more downside based on what I am seeing. On the 10 d hour chart, it appears a bearish EMA 13/34 crossover is about to occur. When the 13 moves below the 34, it indicates a change in trend. In this case it would be down.
On the 3 mo d chart, the trend is still down. Notice how the EMA 13 is below the EMA 34, and it shifted direction and is now pointing down.
SLW was rejected at the EMAs 5 and 9 both now located at 20.32. These 2 EMAs usually hug price action. When price action moves below the EMAs 5 and 9, the stock begins to break down.
The Fed is worried about deflation because of the havoc it would create for the government and all other big debt holders. The fed has a difficult task as it has to promote inflation while fixing interest rates low. High inflation would normally promote high interest as lenders want a return of their purchasing power. Seldom if ever mentioned is the cascade effect on local governments from school districts to state level if interest rates rise and property values decrease along with associated tax revenues. Also seldom if ever mentioned is the beneficial side of deflation for the wage earner and saver. If the federal reserve board was truly independent and unbiased, interest rates would have never been manipulated and we would not be in this catch 22 that is bound to end real ugly. Since purchasing power or wealth cannot be preserved with dollars, sooner or later people will be turning to hard assets. PM's should do very well in dollar terms and their derivitive, PM stocks should do well also.
the other day when it was getting negative comments at 1.17 162 fib off the 1.40 yield 1.56. likely play this on the long side along with my SLW options with the odd dollars I don't use for the option trading
I use "Dynamic Trading" by Robert C. Miner but it's expensive. You could ixquick or google the following...
Elliott Wave Theory
Fibonacci Technical Analysis or Fibonacci Numbers for Trading
20.60 .... 21.00 ..... and 21.27 are my number set for the day, would love to see the 21.27 ,then retrace to 20.60 and set up the gap up or quick run up for tomorrow. Sub wave i often runs to the gap fill resistance, 20.44, retrace 20.30, w 3 21.00 ..... w 4 20.60 with the old top at 21.27 being the v = I of the third wave. Seeing 19.83 as W 2
Thanks cowboy. Appreciate your posting it.
At this time, SLW is finding resistance at the EMA 5 (20.35) and EMA 9 (20.34) which I guess is equivalent to your W3.
On the 6 mo d chart, SLW still shows negative divergence on the MacD and RSI 14.
The FED is more worried about deflation then inflation now.
I agree they can will not taper.
Sentiment: Strong Buy
Thanks dj28rd, ditto on your sentiments.
W1 - Up 19.83 - 20.09 - Completed
W2 - Down - 19.96 / 19.93 / 19.89 / or 19.83 - Completed (Hit 19.93)
W3 - Up - 20.35 / or 20.51 - In process now (There are higher price points for W3 and that would effect W5 higher, but most likely is the 20.51.
W4 - Down - 20.41 / 20.35 / 20.30 / or 20.25 - Most likely price is 20.30.
W5 - Up - 20.93 (This is based on us touching 20.51 in W3)
ABC correction (down) (Guessing 20.38, but there are way to many variables in ABC's) before heading back up much higher over the 20.93