Review of SLV - SILVER ETF (SLV)
as of Thursday, October 07, 2010
Today's Price Action
Change -0.6700 (-2.95%) prices closed lower than they opened. with weak Bids going into the close.This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are "high," it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
An engulfing bearish line occurred (where a black candle's real body completely contains the previous white candle's real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with SLV - SILVER ETF). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle's real body.
MARKET SENTIMENT
PulseScan Swing Vix
PulseScan: 39.47
Swing Vix: 40.98
The Market Pulse is positive since it is trading above its zero signal line.The PulseScan crossed below the Swing Vix creating a DOWN Trend Channel as of 0 period(s) ago. This means that negative momentum has entered the market. Expect sideways to lower prices within the next 3-5 days
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area.
*The last signal was a Over-Bought Sell121 period(s) Ago.
The Swing Vix has just reached its lowest value in the last 14 period(s). This is bearish.The Swing Vix has set a new 14-period low while the security price has not. This is a bearish divergence. Since the PulseScan leads the market 3-5 days out we will wait to see if downside pressure develops.
*Since the last Swing Vix signal, SLV - SILVER ETF's price has been unchanged, and has ranged from a high of 22.8800 to a low of 21.9700.
MOMENTUM
MARKET TREND - Currently the TREND is VERY-BULLISH - Heavy Accumulation.
TREND STRENGTH - STRONG - Bullish Trend,
There is currently no trend strenght reading at this time.
TRENDLINE RETRACEMENT
The close is currently Above it's PulseWave Cycle TRENDLINE RETRACEMENT. - 18.6250
The close is currently Above it's Long Term TRENDLINE RETRACEMENT. - 17.4453
The close is currently Above it's Intermediate Term TRENDLINE RETRACEMENT. - 19.5681
The close is currently Above it's Short Term TRENDLINE RETRACEMENT. - 21.6540
INTRADAY PRICE PROJECTIONS
RESISTANCE 22.6752
SUPPORT 22.1747
WEEKLY PULSE WAVE PRICE PROJECTIONS
PulseWave BreakOut RESISTANCE - 22.8800
PulseWave BreakOut SUPPORT - 19.1000
MONTHLY PRICE PROJECTIONS
BULL MARKET UPTREND - (12-18mo) PRICE TARGET = 31.3900
Long term Trend Line resistance is currently at - 22.8800
Long term Trend Line support is currently at - 18.6250
MONTHLY PRICE PROJECTIONS
BUBBLE PHASE 3 - (72mo+) (TULIP CRAZE CRASH IMMANENT) PRICE TARGET = 56.9200
BUBBLE PHASE 2 - (42-60mo) (MARKET FRENZY BUYING) PRICE TARGET = 48.4100
BUBBLE PHASE I - (24-36mo) PRICE TARGET = 39.9000
VOLATILITY
On 10/7/2010, SLV - SILVER ETF closed
below the upper band by 17.6%.
This combined with the steep uptrend suggests that the upward trend in prices has a good chance of continuing. However, a short-term pull-back inside the bands is likely.
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