Silver Hammer

Today marks the second consecutive day that resulted in a hammer formation on the SLV chart.

There is one technical indicator that is saying something different form the rest. It’s the hammer candles of the previous two days. They are trying to set you up after the key reversal on Tuesday. If you look at the intraday chart, you’ll notice that this morning the sell volume was heavy and during the rest of the day the buying volume took over which is why you see the hammer. I don’t think that this is a coincidence at all. Don’t chase the chart, instead, wait for the chart to tell you when to buy.

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

3 Responses to Silver Hammer

  1. Silver Coins says:

    Like MC Hammer once aptly said “It’s Hammer time!” :)

    The big drop earlier in the week was due to the margin call changes. a shame as silver was reaching for 30 bucks.

  2. Rene from Cape Cod says:

    What would we do without you Aaron! But I believe that “hammer” will be coming down on us soon.
    Keep up the good work.

  3. aaronbasile says:

    @ Silver coins, the rest of the markets reversed as well and I expect silver to follow. However gold and silver will recover much sooner.

    @ Rene I think we might be a little stagnant next week, we’ll see what happens.

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