Silver Price and iShares Silver Trust – SLV Going to $12

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Silver Price and iShares Silver Trust - SLV Going to $12

Silver Price and iShares Silver Trust – SLV Going to $12

We are china bulls! Yes, that’s true. But before we make some income we will many substantially remove some. Long-term we like silver. It’s good not usually from an investment viewpoint though also from an word one. Kyle Bass, a manager of a $2 billion Hayman Capital agrees with us: “I’d Much Rather Own Gold Than Paper”, Bass said. Long-term china is substantially a buy though medium-term there is so most risk. The charts uncover that a support for china cost lies during about $12 for futures and $12.5 for iShares Silver Trust (SLV).

The Silver Price Chart Shows Long-Term Uptrend

We can’t skip to share what we see for a china price. The large design interpretations shows that a transformation from $17.5 to a psychological separator of $50 from 2010 to 2011 had usually a tiny correction. It usually played as a enormous parabola. When a china cost went above a top channel we knew we are in no man’s land and this movement is good for short-term increase though not sustainable.

Silver Long-term Chart Parabola

Source: Octafinance Interpretations + Rightedgesystems

Experience current to be smarter than good parabola feelings. The china cost couldn’t mangle a separator of fifty and CME increasing margins. This forced a china bulls to cover – sell and a bears to cover – buy. But a law is that there was nobody to buy as a bulls were 98% of a market as per a Daily Sentiment Index.  What was subsequent is easy to guess. Silver, iShares Silver Trust (SLV) made several bear formations that always played though failure. The usually draft failures were a longhorn breakouts. What we know from years of trade is that parabolas are reverted behind subsequent their prior channels. Based on a long-term direct line that was shaped during a generation of some-more than 12 years, a support for china cost is around $11-$12.

6 Months HS Silver Price Points to Target during that Long-Term Support

What we see on a draft now in a medium-term is a conduct shoulders settlement of 6 months duration. If this HS proves to be current and breaks out we will substantially dive to a $12 support. In box a right shoulder around $17.5 is penetrated, we can buy your china insurance and parsimonious a stops.

Silver 6 Months Head And Shoulders Target 12-13

Source: Octafinance Interpretations + Rightedgesystems

Yes, $12 china cost per unit is a genuine possibility!

Hedge Funds Wrong Again. Same as with Oil

We adore a COT news since it measures view so good. COT is wily to use though we trust we know how to use it. Shown below, we can see that commercials aka producers (these with inside believe distinct a movement sidestep account machines) are brief silver, iShares Silver Trust (SLV). This is really critical indication, they are a best sensitive players.

Silver Daily Price Chart And COT Report

Source: CFTC + Barchart

Investors, tiny speculators and sidestep supports are still positioned for china to skyrocket. All this looks really identical to a oil positioning usually a year ago when blurb hedged and shorted barrels of oil as quick as probable (something that is saving many of them now), while intelligent investors and traders were long.

Oil COT pile-up positioning

Thanks to Zach Schreiber from PointState Capital, who alerted many sidestep supports during the Ira Sohn Investing Conference, some sidestep supports didn’t humour much. David Einhorn for instance lonesome his oil longs and even went brief to sidestep some oil batch land he had, right after a conference.

For a bulls left, a destiny was not so rosy. You know what happened next. Oil cost crashed by 58% going to $45 per tub of oil from $110.

Of course, we understanding with possibilities and we can never be certain if china / iShares Silver Trust (SLV) will play how we design it, though as it has left down 67% from a 2011 high, because couldn’t we see a 75% decline? The technical setup is here, a view is here, a commercials believe is here, right on a chart.

Courtesy: Octafinance around Zerohedge