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Commodities

iShares Silver Trust ($SLV) : Trendless state. Be careful

Despite the gap down from 38 about 2 weeks back, SLV has hold off on the kumo support .

In fact, we can see how it bounce off the support and seems to be headed towards the gap resistance at around $38.

My personal opinion. If one has missed the entry at $32, it is a little late now to play this rebound. Resistance is about $2 above and same for support at $2 below.

One of Ichimoku principles states that price in the kumo is considered trendless. And this is where SLV is at.

There is a bearish cross, but price is still trading within or above the kumo. Hence, the uptrend is still in-tact at this moment. There is a chance that SLV will break through the resistance as the previous selling could be due to increased margin requirements and hence margin calls.

For the uptrend to continue, it would be best if SLV could form a base at this level before breaking out of the gap.

Not vested currently but is watching this for a favourable setup.