Suggest to buy Silver ETF (SLV) on an upside breakout a little over 30 days ago. (See post here) At that time it appeared that SLV was about to end the sideways channel it had been in for almost 90 days. Since the breakout SLV has gained over 10% and reflecting good relative strength compared to Gold and the broad markets (see inset below).
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Last week I updated Silver per the long-term Fibonacci resistance it is attempting to break free from (see post here). Silver has been worth the ride over the past 30-days! Yet if it can break free from the 30-year fibonacci resistance levels and the small pennant patter above, what SLV has done in the past month could look boring!
Game Plan…Owning SLV with a stop below support! As long as support holds, the “Power of the Pattern” suggests that SLV should continue to provide relative strength and quality absolute returns to owners of this ETF!