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iShares Silver Trust At Critical Resistance

Published 10/05/2012, 01:10 PM
Updated 07/09/2023, 06:31 AM

The widely traded and very volatile ETF, iShares Silver Trust (NYSE SLV), is at a critical resistance level that could make or break this rally.

Since September 13, SLV has been stopped at the $34 level, trading sixteen days in a sideways pattern just under.

Back on February 23 through March 1, SLV traded just above $34 a share following a strong rally, then finally breaking down and reversing into a steep 27% decline.

Could this happen again? Anything is possible and it looks like the $34 level is the make or break for this rally.
iShares Silver Trust
The Big 'If'
If SLV can make a decisive close above, we should be off to the races for another leg up.

Note that back in February, SLV had a one-day rally that gained close to 5%, only to reverse hard and collapse the next day.

This is a risky trade so a sell stop must be used to control the risk if it is taken.

Could Go Either Way
SLV could reach $42 a share in short order if the impasse is broken. If not, we could see another sell off and considerably lower lows.

The Fibtimer.com Stock Timing Strategy does not hold a position in IShares Silver Trust.

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