December 30, 2010
Shares of Ishares Silver Trust (NYSE: SLV) closed at a new 2010 high in heavy trading on Wednesday, December 29.
The current strength in the metals markets has generated a great deal of momentum pointing to likely higher highs in coming weeks.
The concern of course is the incredible rally we are in has driven prices 67% higher in only four months. And the rate of acceleration appears to be rising.
There will be a correction and it will likely be a strong one. The metals markets are volatile and known for huge movements both up and down.
While new highs begets new highs, if you are trading SLV we would keep a stop at about $28 a share and not complain if it is hit. Better that than riding down the inevitable correction.
The target for this rally is $32.62.
Fibtimer.com does not currently have a position in Ishares Silver Trust.