Physical Silver On the Move

Monday, Aug 12, Sprott Physical Silver Trust ET (PSLV) gapped up from its prior close at 8.15 on Aug 9 -- a gap that has not been filled so far after three days of subsequent trading.

The enclosed chart pattern exhibits an interesting "condition" in the PSLV, all of the action since June 20 representing an "Island Cluster Reversal."

In English this means that a gap on the way down in June has been matched by a gap on the way up in Aug that has separated the entire time frame from the rest of the chart.

This "Island Cluster Reversal" has the potential to be a technical game-changer for PSLV, i.e., an indication of a major bottom in the physical silver ETF.

That said, however, PSLV certainly has challenges directly ahead, actually overhead, starting at the 9.40 - 9.80 resistance plateau.

If that resistance zone is hurdled and sustained, then PSLV will trigger a very powerful buy signal.

If not, then holders of PSLV should prepare to hunker down for a prolonged period of backing and filling, and basing, ahead of a forthcoming bull phase.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!