Monday, August 30, 2010
On the chart above, a trend line is drawn from the low's of October 2008 ($8.45) to a dip in the price that occurred on Feb 5th, 2010 ($14.37). These two points are circled in light blue.
There are two horizontal lines on the chart, the white one is the last break high of $19.44 which is the current resistance level.
The other line colored in green is the last 2 year high that was made on March 14th, 2008 at $20.73.
The upwards trend line connects with the 2 year high line of $20.73 close to the end of this year. If Silver continues to move up with the Gold market, AND follows the upwards trend line, we may see the old high met or even pierced to log in a new 2 year high. (In Silver and with this ETF, SLV).
Over the past 2 years, Silver and SLV also has a tendency to rally up, then pull back and consolidate. (On a bullish trend upwards). If Silver does produce a new high, I would expect the same trend to continue.
No technical tool can predict what is going to happen in any market, stock or commodity. All of these asset classes move by themselves and can move higher / lower on any economic or worldwide news.