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I often get ask….”What does an ideal Power of the Pattern set up look like?” For us and ideal set up has these common features – Support/channel lines come into play, along with a Fibonacci support/resistance level and a bullish or bearish wedge pattern is near completion. When it comes to ideal pattern set ups, it didn’t come much better than what presented itself 20-days ago!
The Power of the Pattern started sharing two years ago that Silver could reach the $15 level, which could present a good buy point (see post here) After waiting over two years for Silver to near the price zone ($15) that interested us, Silver Wheaton (SLW) created what looked like a nice set up that we couldn’t pass up, as it was hitting channel and Fibonacci support at the same time a bullish descending triangle was about to end at (1) above, with few investors bullish Silver at the time.
A very nice risk/reward entry point did come into play on 11/6. One thing that does stick out to me is this….Sideways channel resistance comes into hand around the $27 level, which is still a large percentage above current prices.
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Last week I shared the “Monthly Silver” chart above, discussing that a bullish wick could be forming at dual support and the 23% Fibonacci support level. The month is not over with at this time. Should Silver end the month higher than it closed last night, it would appear that a bullish wick on a monthly basis took place at key levels.
