Cup and Handle formation in Silver (SLV)


Classic cup and handles formation in the iShares Silver Trust (SLV). What could go wrong?

With Bernanke on the job for at least another 4 more years, QE to infinity is intact - which means inflation hedges like Silver will be money in the bank for investors.

A cup and handles pattern such as the one seen in the SLV right now is a very bullish signal. Cups with Handles are similar in appearance to Rounded Bottoms. Like rounded bottoms, the pattern includes an elongated U-shape. However, the pattern also includes a short period of consolidation of 1-2 weeks in duration, which tends to be down-trending. The pattern is similar in appearance to a coffee cup with a right-side handle, and indicates the potential for an uptrend.

Be sure to use stop-loss orders to limit losses here Masters. Who knows how stocks will trade in the next week during this post-election hangover. Let the dust settle and use your best judgement.