Home > stock charts, Stock Market, technical analysis > SLV and USO pullback

SLV and USO pullback

Very hard pullbacks in both SLV and USO today.  SLV is a bearish engulfing candle, so that’s not good.  That said, SLV has survived bearish engulfing candles without significant losses earlier in this rally.  I felt terrible about selling my 2x silver (AGQ) on Friday given how it’d rallied on Friday and in pre-market today… but I don’t feel so bad now.  I am interested in re-adding AGQ around $245.

SLV has pulled back to the trendline that I noted a few days ago.  I’ll be curious to see what it means.  I am not adding here since I am already pretty heavily exposed, though I will add on a pullback closer to the 20 EMA.  A break under that trendline would also be where I’d take profits.

Oil (USO) is also pulling back in a big way today.  It is getting very close to the original breakout point, where I’d be interested in adding.  I would have a pretty tight stop under that trendline.

 

***Added note:  Turns out oil gapped under by “buy” price and continued straight down.  Not only did I not add long exposure, I actually got stopped out of my position… so I no longer have any oil exposure.

Also well worth noting that Chris Kimble has suggested taking profits in silver.  So I’ve done that in some of my accounts.  I am holding some to see how SLV responds at trendline support (around $38).  That same trendline support for 2x silver (AGQ) is around $230, so I’ve lowered my AGQ buy price to there – with a tight stop.

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