Charts Signal a Quick Silver Trade

by Sam Collins | November 9, 2012 2:15 am

iShares Silver Trust (NYSE:SLV[1]) — The objective of the iShares Silver Trust 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, following a four-month decline, SLV hit bottom at under $25 and immediately reversed. That reversal propelled the ETF through its 50- and 200-day moving averages to a double top in September at just over $34, where it reversed down. By Nov. 2, it had fallen to just under its 200-day moving average — a 60%-plus Fibonacci retracement from the low of June to the high of October. Yesterday, SLV’s MACD issued a buy signal, confirming the high probability that the Nov. 2 reversal is genuine.

Buy SLV at the market for a quick trade to over $34 and an intermediate (1 to 3 months) target of $36-plus.

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Trade of the Day Chart Key

  1. SLV:

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