Silver (SLV) – Weekly Candlesticks
Gaps on a daily chart usually get filled – eventually. Certainly not “always” – but usually. Gaps on a weekly chart are more rare – and almost always get filled – eventually. Again – not “always” – almost always.
Here, SLV is displaying 3 weekly gaps since the intermediate bottom in July – a sign of the impulsive nature of the recent rally. Last week’s gap has been filled by this week’s price decline, and I expect probability favors the gap between $16.10-16.20 on SLV to also fill before any reversal higher.
Not sure about the gap in July at about $15.10-15.20 for SLV…the nose-dive into the July low was much deeper than most people anticipated, with some people questioning whether the print to $14.34 (basis comex $Silver) actually occurred – although watching from my desk, it sure seemed real to me at the time! In any event, that gap may well stick around just as a reminder that “almost always” applies to filling weekly gaps.