Silver has taken a beating due to overdue correction of froth, margin requirement tightening, and the recent rally in the Dollar. With the triple whammy, even the long time darling of commodity, SLW, has seen its share price retreat over 30%. But now silver is at its trend line support, the down trend may be taking a breather.
Today marked the fourth day that SLW consolidated around the area of multiple confluence:
- 200 day SMA
- 200 day EMA
- 76.4 Fibonacci retracement
- 50 week EMA of 32.41 just below
In addition, the daily MACD is improving, the daily CCI showing positive divergence, and oscillators on the 60 minute chart all showing positive divergence. The one unfortunate thing is that volume has not confirmed; therefore, some more consolidation may be in order. But I may consider front-running a long entry should we see any correction back around 33.70, with stop exit just below 32.50. First target is 36. Perhaps a scalp on a break of 35.