Silver is heading toward the resistance that lives in the hidden trend line that runs parallel to the lower trend line of the SLV 240 minute graph below. It very well could turn into an a-b-c to the top of the channel followed by one more move down which would be the length of the 1st wave of this series. In other words, $16. After all, the recent action looks a lot like an ending diagonal with 5 rail bumps complete. Not saying it will happen but watch that lower support line of the current up-sloping channel. If we get a gap down below it, it's likely that another wave down will be needed to one and for all close out this silver bear. If we get 5 waves down I will be loading up. This is not something I have done to date. I have bought small tranches only, in measured steps. But one more wave down as shown below gives a very attractive technical entry point that I will not pass up.
So take it lower boys. When walk away in May happens to the broader markets I suspect the money will come flowing back into metals as the sector rotation moves back into the beaten down metals and miners.
If, of course the metals break out of that upper resistance then we are in no man's land where it will be best to hang on for the ride.
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