arton- Silver metal or SlV?

    Posted by matt on 23rd of Oct 2012 at 10:03 am

    arton- Silver metal or SlV? they trade at slightly different prices but of course follow one another.

    As always it's sort of a personal choice depending on your personal risk tolerances and are you a gold bug buying it for the long term (which means you could use a wider stop) or are you buying it for a swing trade or for a short term bounce soon?  All this matters and changes the answer.  

    I discussed this on the weekend commodity newsletter and I have in the past.  For gold and Silver, it was a great time to buy long term positions in them in the July/Aug time frame when they were in their bottoming patterns and seasonality also kicks in during those months.  Recently I've stated that this pullback as long as it forms a lower high and doesn't pullback too much might offer a second buying opportunity.  Over the weekend I discussed support areas as the 38% and 50% Fib and 200 day MA.  One could consider scaling in perhaps vs buying a whole position at once with a stop in of course.  Or one might want to wait for some kind of reversal on the 60 min chart such as breaking a downtrend line etc. 

    As far as this pullback, it depends what kind of pullback it is, I guess we'll find out over time.  If the move off the Aug lows was a wave 1, then this pullback would be a wave 2 and form a lower time, however be warned, wave 2's can be quite deep, retracting 62% at times and 50%.  There are other alternatives of course.

    I've attached a daily and 60 min chart, on the 60 min chart I would like to see it break out of the channel or at least see it start moving up on some volume with better divergence

    Thank you matt. I buy

    Posted by arton on 23rd of Oct 2012 at 10:19 am

    Thank you matt. I buy CFDs on the spot metal. The leverage position doesnt allow me to take wider stop/loss. I am kind of a gold buck and want to buy it for a swing trade, although short terms gains are welcomed :)

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