Wall Street Weekend Update, we look at Silver! (Update2)

EXHIBIT 1.1: Daily Chart (SLV ETF v. Silver Futures)

We like Silver for the bullish trade. You may consider a trade to buy the SLV this Monday.

Company: ISHARES SILVER TRUST (SLV)
Action Buy the Stock
Set your Entry as BUY LIMIT @ 35.55
Set your Stop Loss as SELL STOP @ 34.61

SELL JUNE 34 PUT options (to create a credit trade) with a STOP LOSS that is triggered based on the primary stock price.

WARNING THIS TRADE IS GOOD FOR ONLY MONDAY  JUNE 6, 2011

Money Management; Risk NO more than 5% of your investment portfolio on any trade.

If you order gets filled then at the end of the day after the market close 4:00 pm EST. Move you stop up . This would be repeated day after day ONLY if the stock has made a higher low.  After some point and time your either going to have a profit locked in or been stop out for a small loss.

Wall Street Weekend Update, we look at Silver! (Update1)

Back on June 1st, this was a trade alert to try to get a bearish trade off the next day with a the Silver ETF (ZSL).

We happen to had are order filled the next day @ 17.44 per share, with are current stop loss @ 17.73

We also had are PUT options order filled and since this was a credit trade we received $75 per contract.

See prior post @ this link.

EXHIBIT 1.1: Daily Chart (weekly v. Daily. Silver Futures)

In exhibit 1.1 in the chart on the left you can see we came up to test resistance during the last two weeks and failed to close over the Fib 382 level.

In the chart on the right we look at the daily price pattern, and see that since Wednesday we have made lower lows and lower highs coming of the resistance price level.

EXHIBIT 1.2: Daily Chart (SLV ETF v. Silver Futures)

In exhibit 1.2: we look to the right of the chart at the Silver Futures. The candle stick that formed some may call a hammer. But since it is a very small body and has a upper shadow others might call it a doji dragonfly. We also closed above the 618 Fib level.

Depending on the US Dollars price action Monday, if it goes down in price and any additional fear traders have since Fridays closing, we may see Silver attempt to test higher price.  If we get higher prices in the US Dollar Monday with out a run on Silver we can see Silver go to lower prices.

In the 60-min chart below well seeing  Silver testing resistance with selling at these price levels.

EXHIBIT 1.3: Daily Chart (SLV ETF v. Silver Futures)

Wall Street Weekday Update, we look at Silver!

EXHIBIT 1.1: Daily Chart (SLV ETF vs. Silver Future)

In Exhibit 1.1. we look at the Silver Futures chart on the right. We had silver come off the lows of $32.30. To  test several times the Fibonacci Retracement level of 38.2% label in the chart as a purple horizontal line. Every time we retested it. It was done with lower volume.

Since today we made a lower high and lower lower we confirm a trend reversal. If your one of the traders that went short yesterday or today’s morning session. That was a good entry.

Now if your late to the trade. Ask your self is it to late to enter the trade. Is the reward worth the risk. Well your need to know the following before you enter a trade. Entry price, Target price and your Stop loss.

Lets look and the next chart 1.2. to figure what price levels silver may retest. So we start by looking at the Silver Futures chart to the right.

EXHIBIT 1.2: Daily Chart (SLV ETF vs. Silver Future)

After looking over the chart. I do not see signals that Silver is ready to go below the Fibonacci  61.8% level @ the price range of 34.80. I might consider buying Silver when we retest 50 or 61.8% Fib levels. Also when we retest higher prices levels near $41 to $43. I might consider to short Silver.

If you still want to trade silver short here is the set up to place before the market opens Thursday morning.

Company: PROSHARES ULTRA SHORT SILVER (ZSL)
Action Buy the Stock
Set your Entry as BUY LIMIT @ 17.97
Set your Stop Loss as SELL LIMIT @ 16.16

SELL JUNE 16 PUT options

Wall Street Weekday Update, we look at Silver!

EXHIBIT 1.1: Daily Chart (Silver Futures & ETF stock)

Silver is coming it to a key resistance level as shown in the charts with the purple horizontal line.  If your in the silver trade as a long position, always have a stop loss in place to protect any gains you have made.

From the look of the chart, it appears silver is in a range bound between $38.993 on the top and $32.30 on the bottom.

If Silver gives it up near the Fib of 38.2% level and shows a trigger to go short. We will look to explote the trade.

We will short the Futures contract, Buy the silver ETF “ZSL” and sell the PUT option with a strike price either OTM or highest Extrinsic Value.