The Beautiful Chartology Of The iShares Silver ETF
David Tablish | Apr 09, 2018 12:23AM ET
The iShares Silver ETF (NYSE:SLV) along with the PM stocks have been underperforming gold in a pretty significant way. Normally you would like to see the PM stocks outperforming gold on the front end of a bull market similar to what we saw back in the beginning of the 2000 bull market in the PM complex. So far that hasn’t been the case.
Below is a weekly chart for SLV that we’ve been following for a long time now as it has been chopping out the nearly four year diamond trading range. The first thing that would get my attention would be if the price action could take out the top rail of the seven point diamond which is technically a reversal pattern at the moment.
A touch of the bottom rail would complete the 8th reversal point which would be a consolidation pattern to the downside if the bottom rail is broken. It wouldn’t hurt to see SLV trade back above the 65 week ema if one is a bull.
This next chart for SLV is a longer term weekly look which puts the diamond in perspective. If you’re a long term reader you may remember the 8 point diamond that formed back in 2012 which led to a big impulse move down.
This next weekly chart has a lot of Chartology on it which shows SLV produces some really nice chart patterns. The 2008 crash low produced the head of a large H&S consolidation pattern which led directly to the the high at 50. Note how the right shoulder was a small H&S pattern. SLV also built out a beautiful red bullish rising flag as a halfway pattern to the 50 area in time and price. So far there is nothing on this chart that strongly suggests to me the bear market is over and a new bull market has started.
Since the April 2011 high which took place a full five months before gold and the PM stock indexes topped in September, we can see one consolidation pattern forming below the previous one. The current diamond has a chance to be a reversal pattern, but the bulls need to take control so until then the downtrend continues. SLV has gone virtually nowhere in nearly four years which has been dead money if any one is a long-term holder.
Get The News You Want
This last chart for SLV is a long term monthly chart which shows its parallel double trendline downtrend channel. It wouldn’t take a lot of work to turn SLV bullish, but the bulls need to step up to the plate with action and walk the walk. I would love for nothing more than to see the diamond resolved to the upside.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.