Silver Closes Higher On Low Volume

Silver closed higher for the sixth time in the last seven days though volume in the past three trading sessions has been slowly diminishing. I think that we may close marginally higher for the week but I do believe that we are not ready to test overhead resistance quite yet, and I expect some short term support to be put in towards the middle of the week.

Short term momentum appears to be dwindling as evidenced by the slow stochastics and the weakening volume. I think the floor for this week will be put in between the 50 and 20 day MA’s. I don’t expect SLV to stay any lower than $28.30 this week, though there is a pivot point at $28 and it could go that low intraday.

Same story for spot silver, trading range is $26.50 – $30. If the price manages to break above $30, you’ll want to advance your stop loss near the lows of the previous candle in as we’ve had trouble staying above this resistance level in the two times that it has been broken.

I don’t see silver continuing to consolidate much longer. I think that come March we will make a run at $30 and perhaps stay above it this time. The run we had late last year had to be met with some profit taking, but due to the recent hot streak, more people are learning about silver in regards to its uses, global demand, and physical supply shortage. The last month has been extremely boring but I don’t believe that we’ll have to wait too much longer for larger funds and institutions to get involved.

About Aaron Basile
Day Trading and Swing Trading Ideas, Certified Personal Trainer, Power Bodybuilding, Avid Sports Fan (NBA, NFL)

2 Responses to Silver Closes Higher On Low Volume

  1. Gold says:

    Great website, practical information. Thanks for the opportunity to comment. We’ll gladly publish a post about you on, if you’d be so kind to email us the text.

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