Silver Shows No Signs of Stopping iShares Silver Trust broke through the top of a bull channel on a succession of breakaway gaps
Aug 23, 2011, 3:00 am EDT | By Sam Collins, Chief Technical Analyst, InvestorPlace
iShares Silver Trust (NYSE:SLV) — This exchange-traded fund (ETF) reflects the price of silver owned by the trust, less the trust’s expenses and liabilities. The fund is intended to constitute a simple and cost-effective means of owning silver since the trust holds physical silver bullion.
For almost four months, silver has been consolidating within an orderly but plodding bull channel with support at its 50-day moving average. Yesterday, it broke through the top of the channel on a succession of breakaway gaps and a fast moving stochastic. The target for the break is at least the prior high at $48, but further crises could push the metal even higher.