SLV ETF Continues to Power Higher along with Gold

Both silver and gold continue to blast higher.  I think it is an important point to observe that gold and silver are pushing major new highs while the stock market seems to be drifting a bit.  For the first time in a long time I am maybe starting to wonder if we will see them decouple here.  In other words, see gold and silver start to feed off of paper equity market weakness.

I wrote about the SLV trading in an expanding wedge formation and a low volume retest situation near the 36 range.  This has since led to a huge upside move.  Initially I talked about how SLV could hit the 40 to 42 range.  It could be that there is room up to the 45 range now.  The SLV is currently trading very strong in the RSI power zone and I suspect will continue to do so for a bit longer.

The metals really are the real bull market and this fact is likely to remain true for many years.

slv20110408

The 45 to 46 range would make the current run in the SLV somewhat equal to the run that began in early February 2011.  There always exists the possibility that the SLV can bust north out of all the top channel lines shown in the chart above which would put it into extreme breakout mode.

Posted in Commodity ETF, ETFS
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4 comments on “SLV ETF Continues to Power Higher along with Gold
  1. Eden says:

    Awesome analysis Tom..
    I have been Long silver since $26.

    Thanks for the update on metals.

  2. steve says:

    Tom, I always enjoy your great analysis. Can you please recommend some tech. analysis books that have helped you along?

  3. Tom Tom says:

    The technical analysis books I enjoyed the most were:

    Technical Analysis of Stocks Trends by Edwards and Magee

    Trading for a Living – Alexander Elder

    The Secret Science of Price and Volume – Tim Ord

    Also to learn Wyckoff Check out Gary Fullet at LTG Trading here:

    http://www.ltg-trading.com/archives.html

  4. Eden says:

    Tom
    any more update on Silver?
    IT is really making some Parabolic move right now.
    with gold hitting 1500 i think silver really can goto 50.

    any New Opinion on that?

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