On 7/11/13, it broken out of the double bottom formed by the 6/27/13 & the 7/5/13 closing low. It retraced back and tested the double bottom breakout candle on 8/7/13. Not only did it pass the test, it also formed a bull flag during this process. The projected price target from this bull flag is near 1407, which is also near the 38.2% Fib retracement from the swing between the intraday high on 10/5/12 to the intraday low on 6/28/13.
For the gold ETF, GLD, its bull flag measured move projected price target is the 38.2% Fib retracement with a value near 137.37.
Silver did not bounce off its double bottom low as cleanly as gold did. Instead of trending pass the double bottom pivot to form a bull flag, it formed a rising price channel then pulled back to retest the double bottom pivot. It then broke above the declining trend line and move passed the price channel pivot high to make a higher high. Since this breakout on 8/12/13, it has gone practically straight up toward the next possible resistance level near 24.60.
The price action from the silver ETF, SLV is more abrupt. When it decided to move, it will not gradually move toward the resistance/support. Instead, it simply gap to the next level of resistance or support, and that made it difficult for risk defined entry. After the latest gap from 19.77 to 20.60, it spend one day on consolidating this gap move and off it went on an elevator ride toward next resistance level near 23.70.
