SLV: Silver Has Broken Out (Technical Analysis)

Apr. 12, 2024 12:19 PM ETiShares Silver Trust ETF (SLV)SIVR, SLV21 Comments

Summary

  • SLV has broken out of a multiple consolidation pattern, indicating potential for higher prices.
  • The potential is supported by several key fundamental forces like the supply-demand dynamics of silver and the mint ratio.
  • Silver's supply-demand has been imbalanced in recent years.
  • Expansion of new technologies such as renewable energies, EV and 5G is expected to further widen the imbalance.
  • This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »
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Andrey Zhuravlev

SLV’s breakout

This article’s goal is to A) analyze the technical signs that the iShares Silver Trust ETF (NYSEARCA:SLV) has finally broken out a multiple consolidation pattern, and B) analyze the fundamental forces that can support even higher prices.

I

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This article was written by

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Sensor Unlimited is an economist by training with a PhD, with a focus on financial economics. She is a quantitative modeler and for the past decade she has been covering the mortgage market, commercial market, and the banking industry. She writes about asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets.

Sensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SIVR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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