Well, we did go down today, to 0.85, since we opened at 0.85 and also made it the low of the day. Not much action early on but from 11:00AM buyers were willing again to push us higher, first to 0.87, then to 0.88 for most of the afternoon and we managed to close at 0.89.
Silver managed to hold its own today, dropped a bit during Hong Kong and London trading but managed to pull back and regain its earlier losses.
Chart wise with Orko Silver I’m looking at an engulfing bullish pattern, this is a pattern which occurs when the red() body and shadows are followed by a blue() candle which completely engulfs them. A bigger body would give more support to this signal but for an engulfing bullish pattern to occur it is not by definition required for the second up body to either be bigger or to have shadows/tails. If it engulfs the previous position that is basically enough. In our case this pattern could mean that bulls are gaining strength over the bears and that a counter move could be in the works. (a move under 0.85 negates this)
Now to base everything on that one signal,…NO, however, we can combine this engulfing bullish pattern with the fact that around 0.85 there lies a pivot point which adds to the signals strength.
Looking at other indicators, MACD yesterday was down, now, I’m already seeing it move upwards. Not on the chart mind you, in my mind. RSI is very comfortable where it is. If I set the RSI to a period of 2 then we’re also looking primo. RSI 2 is to be used as a short-term indicator. If you want to know more details I’d suggest you take a look at the article Why RSI May Be One of the Best Short-Term Indicators.
As always, never just go by one indicator, look at all. Make decisions based on not just one piece of the puzzle put try to gather more pieces. One can never see the entire picture but the more pieces we have the better view we have at what might be
The bigger picture
And if we still get it wrong, well, hard to tell from a little puzzle piece if we’re looking at the right or left fingernail. Mishaps do happen but knowing that you’ve gone wrong and immediately adjusting once views also saves a lot of money. But everything is still going as planned.
So, yes, maybe we could go farther up from here, the stock certainly is ready for it chart wise. I’m looking at our bear as being from the same breed as the following one :
Direct link to youtube
Needless to say, not only did he get a more than deserved beating to his holy marbles, he’s also out cold for the time being. What do you think? Is this bear ready to head back for its cave? If you have any comments I’d like to hear them.
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