We had no idea really how far silver would go. That last wave kept extending. The colored lines indicate what I believe is the wave count. If so, then one would expect SLV to retreat back to 37 or thereabouts before moving forward again. Since silver has moved inversely with the market during this rally I suppose this development isn't entirely unexpected. How long silver and the market will remain inversely correlated is an interesting question.
I noted the bearish divergence on RSI last night (brown lines) but decided to hold my position. I set a stop in the gap.
The black line on RSI indicates positive reversal building up, at least on the 30 minute chart. For positive reversal to occur SLV would have to sop before it hit 37.20 though. The implication here is not to wait too long. Possibly we only get a gap fill (happening as I write this post).
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