Cup and Handle formation in Silver (SLV)

Silver-Scottsdale

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.