Oscillation Crossover in Silver

Hope everyone had an enjoyable holiday and made the most of our time off from the financial markets. Today I would just like to go over again the symmetrical triangle that I pointed out at the end of last week. The short trading week made thursday the last close and silver finished up $0.09 but did not break through the top trendline.

What I want to add to last Wednesday’s commentary is the impending bearish crossover on the slow stochastics and how it relates to the current price activity. We recently saw a bearish crossover take place above the 80 line after a bounce off of the 20 Day SMA. That action turned out to be contradictory to price activity as buying pressure pushed the price higher just two days following the cross. I do expect the next trading day to be either down or flat and the crossover to take place. The slow stochastics should be disregarded at this time as they are lagging and diverging from the true momentum.

In any case, this week I’ll expect a breakout up above the upper trendline on high volume. I’ll be watching SLV in addition to spot silver in order to be able to confirm the move with volume.

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

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