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Let's notice that today's early weakness in the iShares Silver Trust (NYSE: SLV) came right down to its week-long support line at 17.02, which contained the weakness, after which the price structure pivoted to the upside into a spike that is nearing a test of the 10 day resistance line, now at 17.48. More importantly, perhaps, is the shape of the pattern that has been carved out since the 10/13 high at 17.73, which looks like a coil within the upper 40% of the Oct. price range. As long as the boundary of the coil remains in the upper 50% of the prior range my work will remain "friendly," and potentially very bullish in anticipation of an upside thrust from the coil. If such a scenario unfolds, I will be expecting the SLV to climb to 17.90-18.10 thereafter.
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
