Yesterday the price of the silver ETF, SLV was near a potential support level of 37 and its 50 SMA. When SLV open for trading today, it gapped down to open at 36.53 and made a feeble attempt to retrace to test the 37 for resistance. After retracing only to the level of 36.89, it resumes its decline to the mid 33 and finally halted the decline for the day when it touches the 100 SMA.
When the price drop like a falling knife, it is best to avoid the temptation to bottom fishing. Otherwise, one’s trading account can get cut up very quickly. For now, even if SLV finds support at 33, I will wait until it has bounced off the support before considering taking any position on it.
