Wednesday, September 12, 2012

Silver: $SLV

Anyone who has been long silver in the last 18 months has been suffering. My quick technical analysis of the weekly chart shows a few things:

1. The recent breakout above the descending trendline at $28 has not been confirmed with volume.

2. Long term support is $26, that's where buyers have shown up as far back as Jan 2011

3. Sellers have come in before at $34

If you are a trader, then long positions should be suspect without a breakout above $34 ON VOLUME.

If you are a long term holder, any significant break below $26 should signal trouble.

If you bought silver in the last year, well what can I say?