September 14, 2010
Shares of Ishares Silver Trust (NYSE: SLV) closed at a new 2010 high in heavy trading on Monday, September 13.
Although its sister ETF Streettracks Gold Shares (NYSE: GLD) is off a bit from its high, the current strength in the metals markets as well as momentum point to likely higher highs in coming weeks.
In fact both of these ETFs may be headed for breakout rallies as this move to new highs has been setting up for some time.
SLV has broken out of a pennant formation that lasted from May into August. Pennant formations typically break in the direction of the prior major trend and that was to the upside. SLV broke out of this pattern, to the upside, on August 25.
SLV’s old highs, made in 2008, are at about $20.62 a share. This will be the target to reach and potentially beat in coming weeks.
Fibtimer.com does not currently have a position in Ishares Silver Trust.
Disclosure: Fibtimer.com does not currently have a position in Ishares Silver Trust.