October 28, 2009

  • Watching Silver

    SLV Chart

    The orange box is the 4-month up trend. We’re clearly out of that, and headed down with LOTS of volume.

     

    I think the blue line is the one to watch next, then the green, then the red.

     

    We’re obviously still well inside the 12-month trend.

     

    This appears to be a direct response to the dollar moving – check out DXY. The implication is clear – investors are using silver as a safe haven for dollars. When they no longer need that safety, they flock back to the dollar. 

    Obviously this cannot be a long-term move because of what we know about the dollar, but it looks like this is creating a silver buying opportunity.