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Silver has come down to some nice support and put in a hefty bounce today (over 3% !).
Anyone brave enough to buy here?
I'm considering it but I have to admit that I'm a little jittery about it.
If I did buy here it would be based more on the fundamentals of the metals market than on any technical analysis. It has come down to some technical support on the chart but how many of my technical rules can be broken that silver isn't already breaking! It's making lower lows and lower highs, its WAY below it 200 day moving average, its not even trading above its 50 day moving average - not even its 20 day moving average! I must be nuts for even thinking about buying this thing!
Nevertheless, I am strongly considering it. As bad as the technical picture looks, the fundamentals are just screaming BUY BUY BUY!
I'm new to Value Investing and about a year ago (before I started studying Rule 1 Investing) I bought a lot (659 shares) of SLV at various times that I calculated to be have cost me about 40.50 a share.
I have debated about just selling it and taking a loss, but I have been holding it and just looking at technical indicators.
I may just keep holding it.... I also bought some physical silver (at an even higher price :( ) that I will definitely keep.
All the best to you!
I've got some as well, and am waiting.. and waiting... I've read many articles indicating how it's really going to shoot up! Here are a couple: (thoughts?)
And this is interesting as well:
I've been telling everyone I know for that last year and a half to buy all the silver that they can afford and if it goes down to buy more.
That's a lot easier to say than it is to do, right?
The half way point between SLVs all time high and zero is $24.18. That line is almost always strong support for any stock or commodity. Don't ask me why, it just is. Use that as your line in the sand. If SLV closes out a week below that line, its probably time to step aside and lick your wounds and wait for a more bullish set up on the chart to get back in.
By the way, how the heck do you end up with 659 shares? I mean, I like prime numbers as much as the next guy but I'd just be itching to buy one more share just to make it an even number.
I am building up a stash to use on either a commodity or a PM.However I will use an unconventional trading style that, on paper, looks profitable on the way up. And you allocate more capital on the way down.For me, I can only stomach using this style on commodities or PMs on the basis they won't go to zero.
There's no great big rush on getting back into silver. The more I look at the chart the more its looking like its just going to go sideways for the rest of the month and maybe well into July.
There are two major, multi-year trend lines, one support the other resistance, that are converging into a tight wedge right at these price levels that its at right now. It won't have to break out of the wedge until late July and so probably won't for another few weeks.
If I wasn't already in SLV, I'd wait until it breaks out. If it breaks to the up side it'll go to the 200 day moving average almost immediately. If it breaks to the down side it'll go to $24 at least and perhaps as low as the upper teens, say around $18.50 or so. Either way, it'll be a playable move, if you wait for the break out before committing yourself.
"I've been telling everyone I know for that last year and a half to buy all the silver that they can afford and if it goes down to buy more."
I'm not thinking about "normal" entry tactics for silver.
"Normal" = buy or buy half on a breakout or some other bullish signal, the rest after a pullback, etc.
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