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Old 11-13-2016,
Attaxargo Attaxargo is offline
Join Date: Dec 2014
Posts: 0

Since our recommendation (in red circle), SLV dropped by as much as 9% before recovering somewhat in last Friday’s trading session. The fall came on a reasonable pickup in volume (black circle) and pushed the stock’s Relative Strength Indicator (RSI) near enough to an extreme oversold level for us to shout “uncle!” and decide to close the trade (in blue at bottom).

But isn’t there more downside for silver?

It’s likely there is, but in the meantime, it appears we may be in for a bounce, however transient, and that in itself is reason enough for us to cash out.

The longer term picture for silver, of course, is still weak. The failure last week to hit the RSI 20 line, the lack of a clear volume climax and the continuing decline of all the major moving averages speaks of a stubborn bear.

We bought the SLV October 26 PUTS for $1.09 and they’re now going for $1.55. That’s better than 42% in a month (500% annualized – if you care to play that way) and because we’re expecting some near term strength, we’re gone.
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