Pay attention to the greenback, because if it continues to soften overall we should see the precious metals game, Silver of course included. If we can make a fresh, new high, the market can continue to reach towards the $17 level which is my longer-term target. The alternate scenario of course is that if we break down below the $15.50 level, it would be breaking a trend line and we could have a move back towards the $15.25 level, possibly even the $15.00 level in order to “reset” the entire move, and perhaps try to build a bit of momentum.
If we were to break down below the $15.00 level, that could unwind this market down to the $14.00 level which would be a return to the bottom of the overall consolidation. Longer-term though, I believe that the market does favor the upside so I am bullish of silver and believe that adding on fresh highs should continue to be the way forward.
The iShares Silver Trust (SLV) was trading at $15.02 per share on Tuesday afternoon, up $0.20 (+1.35%). Year-to-date, SLV has declined -6.07%, versus a 4.55% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Yahoo Finance.