All That Glitters Is Not Gold (But Silver?)

And another long Idea - this time in the Silver ETF, SLV.



Looking at the daily chart for SLV, a couple of things standout from a few days ago;
- The price just broke the all-time high at 31.80, along with significant resistance at ~31.50, and
- SLV gapped up, leaving tight stops a bit problematic.

As I've said before in this instance I do two things;
1. Wait for a pullback (which we're now seeing?), and
2. Switch to the commodity futures chart (emphasis - I'm not trading the future, just taking a look)

Using the July Silver contract on the CME;



We can see the breakout, and now the retest(s), of two critical highs from the last few months.

Switching down '1' interval, to the 4-hour chart;



We can see 3-4 retests of those old highs, which now may be acting as support. I've drawn in a short-term trendline and resistance. A cross of that trendline and a close above 36.260 should provide a good entry point.

A stop could then be placed at 35.00 (with a close below that on the 4-hour), just below this recent turmoil.

As for targets, this scenario has SLV making new all-time highs - best to just trail and let SLV tell you where to exit.

All that glitters..

My ideas here on TradingView are for educational purposes only. It is NOT trading advice. I often lose money and you would be a fool to follow me blindly.