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Frank started market timing in 1982 when the Federal Reserve cut interest rates and sparked the 1980’s bull rally. Realizing that this rally could have been forecasted, he began to search for indicators which had similar forecasting ability. Within a year, his first newsletter was launched,... More
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  • IShares Silver Trust (NYSE SLV) At Critical Resistance 0 comments
    Oct 4, 2012 5:05 PM | about stocks: SLV

    October 5, 2012 (By Frank Kollar)

    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 13th, SLV has been stopped by the $34.00 level, trading sixteen days in a sideways pattern just under.

    Back on February 23rd to March 1st, SLV traded at just above $34.00 a share after a strong rally, finally breaking down and reversing into a steep 27% decline.

    Could this happen again? Anything is possible and it looks like the $34.00 level is the make or break for this rally.

    Chart Courtesy of StockCharts.com

    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.

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

    The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy does not hold a position in IShares Silver Trust.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: SLV
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