Thursday, March 1, 2012

SLV: Reversal trade

Went short SLV at 34.05 on a reversal trade.  Yesterday was a significant down day from a top with MACD divergence. I went in small shares expecting to pyramid into this position.  I will add if today's low is taken out, with a stop at yesterday's high

Concerns:
Slv also could be seen as an inverse head and shoulder pattern which is usually bullish.  The right edge also did go beyond the november Highs.  I still don't feel it is bullish because the MACD barely budged on the "breakout"  The question will be whether it falls to support and holds, or is this a true reversal.  For that reason,  I took a small position here, with the intention of adding into it.




Entry grade = 63%  NICE!

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