September 8, 2011
Shares of Ishares Silver Trust (NYSE: SLV) have a bullish pattern on their daily chart that points to a likely big move ahead.
SLV has been recovering from its steep May decline and over the past two months has had three pullbacks to higher lows, on June 27, Aug 9 and Aug 24. If you draw a line through the lows you get a rising trend support line. In the current selloff SLV again reached the rising support line (on September 7) and reversed from a higher low.
Also, if you draw a line between the April rally highs and the August 22 rally highs, you get a declining trend resistance line.
A break of either would likely result in follow-through buying or selling, in the direction of the break, in coming weeks.
Resistance is currently at about $42 and support at about $39.00.
http://www.fibtimer.com does not currently have a position in Ishares Silver Trust.