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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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  • Breakout for Ishares Silver Trust (NYSE: SLV)  0 comments
    Feb 17, 2011 4:53 PM | about stocks: SLV, GLD

    February 18, 2011

    Shares of Ishares Silver Trust (NYSE: SLV) closed at $31.03 on Thursday, February 17, a one day gain of 3.6%.

    Only a few days ago we wrote that SLV was on the verge of a breakout and that a decisive close above $30.00 a share could lead to a new advance and new highs, with a potential of reaching $33.14 in coming weeks.

    There are many articles about the decreasing supply of silver plus an increasing demand. Add to this that much silver is destroyed when used and there is a good case for higher prices.

    At the same time, silver, gold, platinum, etc. are emotional metals. With silver already up 100% in the past one year, to buy here could be risky.

    But we try to ignore the fundamentals as well as the emotions, and concentrate only on chart prices. The chart shows SLV now decisively above its December 31, 2010 all-time high.

    Gold shares (Streettracks Gold Shares – GLD) and bullion remain well below their highs. This appears to be a move limited to silver.

    How high? There is initial resistance at $31.63 a share. After this is $33.14, 6.8% higher.

    Support is currently at $30.00.

    http://www.fibtimer.com does not currently have a position in Ishares Silver Trust.

    Stocks: SLV, GLD
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