Sunday, July 12, 2015

Support Break for Silver ETF (SLV) - Is Price Headed Below $14?

I am interested in owning silver someday; hopefully, at or near a longer-term price bottom. 

The weekly closing price chart below suggests that the price of the silver ETF (SLV) may continue falling as the dashed green support line, which has been providing shorter term support, appears to have been broken.  

From a bigger-picture perspective, SLV's price has been decreasing within a large falling wedge pattern since about April 2011 when SLV's price was above $46 per share Currently wedge support is at about $13.50 level.  

Will SLV's price continue falling and test this wedge support line again? Only time will tell. So for now, I will be sitting on the sidelines and watching; for as in my opinion, SLV's price action and chart patterns have not been encouraging. 

Click Chart to Enlarge

Not Investment Advice | Important Disclaimer: 
The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher has no position in Silver at the time this article was written.

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