Silver ETF Ready to Break to New Highs

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iShares Silver Trust (NYSE: SLV ) - At the beginning of January, I cautioned , "Precious metals have led most other groups with SLV advancing almost 70% in four months. The uptrend line is now so steep that it will be difficult to maintain, and a penetration on profit-taking is to be expected."

At that time, I recommended that traders who owned this exchange-traded fund (ETF) sell at least part of their position due to the "strong likelihood of a correction."

SLV was at about $29 then, but instead of pulling back, it launched to a new high at over $36. Now at $35.30, it is picking up buyers again, and last year's relationship of a bearish dollar versus bullish precious metals appears to be gaining momentum.

It is time to buy silver again with the expectation that it will break to a new high with a trading objective of $40-plus.

Trade of the Day - SLV Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: ETF , SLV

Sam Collins

Sam Collins

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