Silver Keeps Rising

Today we analyze the ETF from Blackrock Inc., iShares SILVER TRUST (SLV)

This fund replicates the movements of the Silver Commodity in the Chicago Mercantile Exchange (COMEX).

We got good news that last week the ETF received inflows of around $600 million, representing approximately 6% of assets under this ETF, pushing it to become one of the most active ETFs in the World.
Investors and traders have suffered a lot these past few months as Silver sideways movement doesn’t help to profit from either a Long or Short positions. The hike in margins hasn’t helped either for leverage trading.

After the last split in this ETF in summer of 2008 (10:1), SLV rose to a new high of 48.35$ in April 2011, followed by a drop down taking it all the way to a low of 25.00$. However, some confidence is still in this market as investors’ appetite has pushed the price to recent prices of 30.81$.

Looking at its daily chart there are some inspiring factors that make us believe there is still some bullish sentiment here:
The downtrend line has been taken out early 2013, coinciding with a breakout over the 200 DMA and a signal crossover in its MACD indicator.

Now we’re again at a delicate stage as SLV is facing its 50 DMA and its MACD is about to cross over the center line.

If Silver is able to overcome this current challenge, the price can shoot up to the next resistance level of 32.70 – 33.50.

Do remember that this commodity is highly correlated not only to Gold but also to the stock market as it’s considered a precious and industrial metal as well.

Happy Trading.



Important Notice:

Article written by http://marketchartanalysis.com/

The above represents the opinion and analysis of the author, based on data available to him, at the time of writing. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed. These opinions are not a recommendation or an offer to buy or sell securities, or any financial instrument.
As trading and investing in any financial markets may involve serious risk of loss, we recommend you do your own due diligence.