by Scott Pluschau, Silver Seek:
The Silver ETF (SLV) put in a Major Bullish Reversal Pattern on the Daily chart, one that I would classify as an “Island Bottom”. SLV is also marching toward a Major Gap fill on the Weekly chart with increasing volume.
Why is the island bottom an important chart pattern? On the Daily chart left hand side below I have highlighted in the Blue Oval a trading range that took place after SLV had gapped down. Any Bearish positions that were put on or Bullish positions that were taken off inside that range are now are feeling “trapped” by the breakout back above the prior gap. This leaves a clear void on the chart between the two gaps and in my experience this will now act as “Major Support”. Until SLV trades back under $20.00, this development is Bullish.
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