Silver Oscillation Unfolds, Buying Pressure Is Set To Take Off

If you bought when I wrote “open silver longs,” then you are about to be rewarded! Since the article, silver has traded flat into a symmetrical triangle which I have discussed over the last few days. Price activity closed lower today as I forecasted yesterday which sets up my initial prediction regarding the triangle to come true.

Spot Silver

iShares Silver Trust (SLV)

The crossover in the slow stochastics took place as the price closed lower – which is something I said should happen today. The volume has been steadily weaker as the price consolidates – that translates to money being made that is now ready to be reallocated back into the sector. So the final part of my forecast is waiting to happen – a high volume move to the upside that snaps the upper trendline of the triangle and propels the price away from the 20 Day MA. This will happen by the end of the day wednesday but I believe that it is more likely to happen tomorrow. Hold onto those longs now because the ride is just beginning.

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

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