$SLV holds Monday lows no breakdown yet $SLV open

$SLV holds Monday lows no breakdown yet

$SLV opened below the 20 DMA on Monday. This may have gotten some people to jump on the short side. I was not yet ready to do so because I needed to see more of a breakdown. There could still be a move that whips out traders who decided to short the first close below the 20 DMA.

Yesterday it opened below the 20 DMA for the second time, and even traded below the Monday lows, however it was saved again and it closed on the lows by the skin of it's teeth. This tells me that although SLV looks very weak, it is still has some life in it and is trying to hang on.

A little earlier I was watching for a short on a move to 35/36, which can still occur if this bounces hard off the 20 DMA pierce. However, now I am watching for the possibility that it trades sideways in a bear flag formation for the rest of the week, and am certainly watching for a close below the Monday lows. My ideal move at this point would be for this to close below the Monday low, trade sideways and retrace to the 20 DMA. That would be a beautiful setup because I could short the 20 DMA and my exit would be any close above the 20 DMA.

[IMG]http://i.imgur.com/eGEXN.png[/IMG]