SLV: Chart of the Week
The Silver ETF has a nice constructive pattern over here of higher highs and higher lows. More recently, it had a really steep uptrend from the middle part of March to the beginning part of April. So a good 30-35 days of uptrend from about the 17.70 area up to 23. That’s a strong move for silver – more than 20%. It caught up to what gold was doing all year.
More recently it’s been consolidating in a nice tight range, between about 22 to 23, which is normal and what you’d like to see after a nice uptrend like you’ve had here from March to April. So a little bit of consolidation over here, but now we’ve had this recent breakout.
As you can see, the color of the candles were blue and then they changed to teal. Light blue means it’s a strong buy. Teal means it’s a more cautious bullish signal. When it turns back to blue, which may happen in the next couple of days, we want to get really bullish on Silver.
A couple indicators over here – you can see the on-bound volume has really strong and been making higher highs and higher lows.
The TDI, which combines the relative strength as it relates to the Bollinger bands, is also on a buy signal crossover. That’s what you look for – a crossover above this black line.
And finally the MACD – not quite on a buy signal yet. But it looks like it’s going to make a crossover there very soon. Give it a couple of more days. We can see some good volume here on Silver and continued action to the upside.
Notice the parabollic SAR, which is the stop-and-reverse system, has shown a reversal trend to the upside for silver.
We think that silver (SLV) will move up to 25 – maybe a little higher than that – over the next several weeks.
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