Silver Heading Higher
Commodities / Gold and Silver 2011 Aug 19, 2011 - 12:58 AM GMTBy: Mike_Paulenoff
From a big picture pattern perspective, all of the action in the iShares Silver Trust (SLV) off of the major April high at 48.32 has carved out a base-like "cup" formation from early May to late July, which has been followed by a correction that has taken the shape of a "handle."
The composite picture produces a "cup-and-handle" intermediate-term bottom formation, which should propel silver prices -- and the SLV -- considering higher in the upcoming days and weeks.
The first significant challenge to such a rally will be a confrontation with that April-Aug resistance line, now at 40.30. As long as the integrity of the "handle" remains intact at 38.90/80, I would want to be long the SLV.
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By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
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