Rebound Expected In The iShares Silver Trust ETF (SLV)

technical chart lookTrading Central: From a technical view, the ETF is coming back above the 21.80 support area highlighting a tentative false breakout.

Regarding technical indicators, the 120-min RSI has broken above a bearish trend line calling for further recovery in the short term.

On a relative basis against the IVV S&P500, the iShares Silver Trust is facing the lower boundary of a bearish channel (120-min chart) which should spark a rebound.

Trading strategy:
Buy @ $21.97 – Stop loss @ $21.35 – Target @ $23.70

Ratio SLV versus iShares IVV SP 500

REBOUND

slv1

 

SLV2

Glossary


RSI: (Relative Strength Index) a technical indicator which measures the magnitude of gains over a given time period against the magnitude of losses over that period. The equation is RSI = 100 – 100 / (1 + RS) where RS = (total gains / n) / (total losses / n) and n = number of RSI periods Bullish gap: area on the bar chart where no trading has taken place. In an uptrend, prices open above the highest price of the previous day, leaving a gap or open space on the chart that is not filled during the day.


For more information on iShares ETF go to:
http://us.ishares.com/home.htm

Disclaimer

The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects TRADING Central current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterised by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable.

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