Categories
Commodities

iShares Silver Trust ($SLV) : Is it bullish yet?

In my previous post on $SLV, I highlighted that the letter ‘h’ might form on the chart.

However, it did not. Instead it bounced off the support level near $32 and stage a comeback.

However, I will be wary of a bullish move for SLV for the next few months (at least till Nov-Dec).

We see a dramatic fall of SLV from $48 to $32 within one week.

Since then, the buy side volume has not bee high compared to the sell side volume in May.

Technically on the Ichimoku chart, we can also see that SLV is facing heavy resistance from the kumo; all the way to $40.

Unless, we have a breakout above the kumo with good volume, I suspect the SLV rally will be shortlived. Short term, I see SLV retracing to $32 levels and I am thinking it will happen before year ends.

Beyond that, I will need to wait for the Ichimoku chart to develop further.

Note:

Not vested.

Categories
Commodities

iShares Silver Trust ($SLV) : Watch the H

SLV seems to be trading within the range.

This may provide a good opportunity to take a position.

On the Ichimoku Daily Chart, SLV is in the bearish zone under the kumo.

Resistance from the kumo is around $36 and $40

However, on the Ichimoku Weekly Chart, SLV bullish trend is still intact.

 

One thing to be careful on the Weekly Chart is that a letter ‘h’ seems to be forming.

If it breaks downwards, the bearish outlook will continue.

I will try to look for an bullish entry around $32 and keep a tight stop loss.

Categories
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.