iShares Silver Trust (NYSE:SLV) – The objective of this investment is to reflect the price of silver owned by the trust, less the trust’s expenses and liabilities. The fund is intended to constitute a simple and cost-effective means of owning silver since the trust holds physical silver bullion.
On June 28, at under $25, SLV hit bottom and immediately reversed. It gapped higher on the 29th and reversed down, forming a series of higher lows and flat tops at just over the 50-day moving average. On Monday, SLV broke the pattern — called a “V Bottom” — by penetrating the horizontal resistance, and yesterday confirmed a breakout with a breakaway gap through its bearish resistance line (major red dash line from the upper left of the chart). There could be some backing and filling, but yesterday’s price action is a change in trend.
The next resistance is at the 200-day moving average at under $30. Buy for a trading objective of $33-$35. Longer-term investors should buy for a much higher return.