Tom's Weekly Review - Silver: Forming a Swing Trade Bottom

First, let's be clear... I am not saying that silver has bottomed.  What I am saying is that silver is in the process of forming a bottom that should lead to a nice swing trade at minimum or take us to new highs.  The RSI EMA is clearly oversold and the divergence is clear, as noted by the red lines. Silver has been dropping in $6 increments since it's highs in April 2011. We recently bounced off 20.25 in July '13 Comex futures SI, as noted above.  This created a $2 spike low, which is about $6 away from its most recent break down in price @ 26. Can we go a little lower? Yes, but not likely. Here's why:

The VC indicator was looking for a spike low in energy going into April 15th (which came in right on time as seen on the daily charts below).  The energy on April 15th on a scale of 0-9 would be at a 0-1 according to the VC.  The VC was looking for this weeks-to-months in advance.  Now that the spike low in energy has come in, we are waiting for price confirmation.  Price is now falling in line with the market energy and a bottom seems to be emerging.  This is also apparent on the daily bar (see the yellow oval highlighting it below)... indicating a bullish hammer reversal.

So, what I am doing here is accumulating AGQ, USLV, PSLV for my swing trades, using VC cyclical analysis.  At the same time, I'm daytrading using the VC price indicator.  For longterm holdings, I'm maintaining a position in physical bullion.

For potential targets, optimal entry points and access to the VC Trading Room, visit:  http://www.EMA2Trade.com 

TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.