Silver has been on a tear the past 5 trading days. Even with Friday’s intraday drop, it closed higher on Friday than it closed Thursday. It’s a nice looking run-up on the chart –
(credit Fidelity.com)
Reasons cited for this rise include increasing uncertainty in the US-China trade war, some sudden concern about the Fed’s last notes-release, and some soft reports on the US economy. Today it’s the soft durable goods report not quite giving investors the warm and fuzzies, so apparently they’ve noticed that precious metals took a bit of a hammering before.
Could it be there’s no time like the holidays to admit you made a mistake and buy some back? Haha!
Anyway, the RSI says this run may be coming to an end soon, or at least a pause. This run-up has given us a current take on the SLV equivalent to $18 USD international silver – for those keeping track it’s right about 16.80. So mark that on your charts as a psychological round-number price level.
And just in case you actually noticed – Don’t take much stock in the big drop in UUP on Tuesday. The fund declared a 52.61-cent dividend, which almost exactly explained the big drop on open. It’s moves from here that will count.
Signed,
The Gold Enthusiast
DISCLAIMER: The author holds no position in any mentioned security. The author is long the silver sector via a small position in USLV. He may daytrade around this position but has no intention of trading out of this core positions in the next 48 hours.
The iShares Silver Trust (SLV) was trading at $16.85 per share on Thursday morning, up $0.27 (+1.63%). Year-to-date, SLV has gained 5.38%, versus a 21.22% rise in the benchmark S&P 500 index during the same period.
SLV currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #9 of 33 ETFs in the Precious Metals ETFs category.
About the Author: Mike Hammer
For 30-plus years, Mike Hammer has been an ardent follower, and often-times trader, of gold and silver. With his own money, he began trading in ‘86 and has seen the market at its highest highs and lowest lows, which includes the Black Monday Crash in ‘87, the Crash of ‘08, and the Flash Crash of 2010. Throughout all of this, he’s been on the great side of winning, and sometimes, the hard side of losing. For the past eight years, he’s mentored others about the fine art of trading stocks and ETFs at the Adam Mesh Trading Group.