Quick Silver Update

Watching SLV this morning. It’s turning on the fib levels religiously, topping within a nickel of the .382, toying with .236 and heading south now.

I’m watching the 5-minute bars and, FWIW, a pattern has repeated three times in a row: every little dip is followed by exactly 9 sideways/up candles before the decline resumes.

As stated yesterday, the current holders of SLV — most of whom bought at these levels — are more likely to bail if they fear a continued slide.  The volume is respectable, and if this is a 3 of 3, should pick up right about now.

However, there’s support coming in from the long-term trendline at 34 and the previous low of 32.28.  The May 32 puts have tripled in the past two days, so I’ll be keeping a very close eye on things at these levels.

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