Silver ETF - Daily

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The following chart displays the daily progress of the Silver ETF (SLV). There are 2 key price regions where there is a cluster of 3 resistance levels.

Cluster 1 = 16.99, 17.08, 17.17

Cluster 2 = 17.74, 17.87, 17.98

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Extensive use of the Gann Square of 9 dates are used in this chart. The red vertical lines mark the dates that are 22.5 degrees from 2/12/2009. You will see how the wave structure terminates at or near indicated dates. The rally in question labeled (2) has not respected the termination date of 27/02/2010. Since there has been 5 trading days since this time target, the silver bears can arrive at two possibe conclusions:

1) Wave 2 termination will not occur until the next time target of 22/03/2010

OR

2) A significant Gann price target was not met until today so the cycle extended itself by several days. Thus a drop should ensue immediately.

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The declination indicator at the bottom of the chart supports the second conclusion. We see the first wave count of (1), (2) terminate relatively close to max declination. If wave (2) of 3 terminates on 22/03/2010, this would be a half cycle of declination devoted towards a "corrective wave." Since a rally termination on 22/03/2010 would result in a longer declination cycle devoted towards upward price action it would create the argument that the trend has not switched to down.

Here are the key reversal dates to watch:

1) 22/03/2010

2) 14/04/2010

3) 07/05/2010

Price Targets:

1) $13.40

2) $11.89