Silver Prices: Resistance Reference Barrier To Watch In The iShares Silver ETF (SLV, AGQ, PSLV, ZSL, SIL, SIVR)

Corey Rosenbloom:  Silver prices and its popular iShares Silver ETF (NYSEArca:SLV) face a major resistance barrier overhead which should be watched closely.

Let’s update the current Daily Chart of Silver and SLV to note this key price level to watch as a reference.

Let’s focus most of our attention on the overhead resistance cluster at the $35.00 per ounce level.

On the chart above, we see three major indicators wrapping around the $35.00 area:

  • The larger 38.2% Fibonacci Retracement (whole move)
  • The smaller 50.05% Fibonacci Retracement (from August high)
  • The falling 200 day Simple Moving Average

We can also add in a “Price Polarity” level from the November high and mid-2011 lows.

Does this level guarantee that price will turn and reverse lower?

No, absolutely not, but it will be a level many traders will watch and likely react depending on what happens.

In general, Silver (and SLV below) breaks resistance into bullish territory above the $35.00 level and else remains cautious underneath it.

There’s similar EMA and Fibonacci levels to watch underneath price as support at the $33.00 level.  A breakdown there would trigger (or confirm) a bearish bias into the Sell Zone.

Here’s the same style chart for the companion trading fund SLV:

While structure is the same, the key barrier level to watch will be $34.00 in SLV.

Price become bullish for a breakout (Green Zone) above $34, develops a sell bias under $32 (Red Zone) and otherwise is neutral/cautious between these areas.

For reference, a firm breakthrough above this resistance area will trigger the start of a Trend Reversal, particularly on a movement back above the falling 200d SMA.

As traders, we must be as objective as possible and rely on key price reference levels to guide our trading decisions.

These levels appear clearly on the chart structure at the moment in Silver (SLV).

Related ETFs: ProShares Ultra Silver (NYSEArca:AGQ), Sprott Physical Silver Trust ETF (NYSEArca:PSLV), ProShares UltraShort Silver (NYSEArca:ZSL), iShares Silver Trust (NYSEArca:SLV), Silver Miners ETF (NYSEArca:SIL), ETFS Physical Silver Shares Trust (NYSEArca:SIVR),

Written By Corey Rosenbloom, CMT From Afraid To Trade

My name is Corey Rosenbloom, CMT (Chartered Market Technician) trader, educator, analyst, and I am excited to share with you my experiences studying and trading the markets and to hear from you regarding your experiences, challenges, and frustrations, and successes.  My goal is to create a community dedicated to reaching out to those who  have been burned by the market or are anxious about risking their money to make money in the stock, options, or futures markets. Together, we can share strategies and learn how to overcome crippling fears that keep us from achieving our highest potential.

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