Thursday, July 14, 2011

Silver, Asleep at the Wheel

I was asleep at the wheel today and it's going to cost me with silver.

Here's a snip of the past few day's action with silver. Had I looked mid-day and noticed this I would have sold.

The 60 minute chart is even more stark:

Big bearish divergence on the composite and flat on the RSI.  Note that the composite was trending down all morning and the RSI signal came before the red bar. Even after the red bar there was an opportunity for profit taking on the bounce.

Hopefully these signals end up being false signals! My luck is rarely that good though and now will have to hold this through an uncomfortable retracement. By my count that was a 5 of a 5 so the support line can theoretically be violated if silver wants to cover the runaway gap. That far of a fall would probably be enough to recharge the RSI.

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