The World Bank forecast released today is putting severe pressure on equities and commodities.
SLW is testing a long term support at \$8.05, Figure 1 and 2. This SLW resistance correspond with a long term support of e-mini Silver at \$13.85 (Figure 3).
(My entry stop just got triggered as I was typing this.)
Long entry stop: \$8.15, intraday resistance
Exit stop: \$8.05, long term support
Target: \$9.60, bottom of recent acending channel
Reward / Risk = 1.55 / 0.1 = 15.5 > 5.0
As Bill noted in his weekly review, we only have 7 sessions left until the end of quarter. It would seem that the market wouldn't tank in the last few days just so companies can paint a pretty picture that all is well and recovering in their quarterly report.
Update 11:38am: My exit stop at \$8.05 was triggered and I'm out of the position. I'll wait until end of the day to see if I should re-enter this position.
Update: I re-entered my long at 12:52 for \$8.06. New stop is \$7.90, a support from a couple weeks ago. I'll move my stop up if we move above \$8.20.
Update June 23: I was stopped out at \$7.90 at 10:31.
[caption id="attachment_1532" align="aligncenter" width="500" caption="Silver Wheaton"][/caption]
[caption id="attachment_1533" align="aligncenter" width="500" caption="Silver Wheaton"][/caption]
[caption id="attachment_1534" align="aligncenter" width="500" caption="Gold and Silver"][/caption]
: http://traderpau.files.wordpress.com/2009/06/2009-06-22-slw.png : http://traderpau.files.wordpress.com/2009/06/2009-06-22-slw_prop.png : http://traderpau.files.wordpress.com/2009/06/2009-06-22-gold-silver.png