Friday, May 27, 2011

Towards the upper edge...

... of the descending channel. If SPX can't push above the upper edge, the intermediate time frame downtrend remains intact and this is going to be a wonderful shorting opportunity. Daily DMI continues to be negative and hourly chart shows a bearish picture as well with EMAs crossed on the bearish side and price bellow SMA 120.

Weekly DMI is only slightly bullish at this point. If weekly turns negative we are going to have another summer plunge.

Silver on the other hand continues to go up and it looks like EMAs crossing plus SMA 85 did a wonderful job giving a "buy" signal around 34.25. at that moment I said that despite this buy signal, the price action was not convincing and I was looking for confirmation, a jump above two short term resistance levels, 34.5 and 34.7. Even an entry at 35 was good. Let's see how long this uptrend is going to last.

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