Updated: Jan 26
13th March 2022
The Daily Chart
In the SLV ETF daily chart, we can see that the price is broken out of the previous mid term bearish trend, which was driven by the bearish triangular pattern formation. Price made a double bottom pattern at the previous bearish triangle target price area, which is at the 20.1 – 20.6 support zone and that indicates the reversal of the previous mid term bearish trend.
Considering the moving averages, 20/50 MA lines crossing the 200MA upward confirmed the initiation of the new mid-term bullish trend.
Because of the double bottom pattern formation, we can identify the 20.1 – 20.6 area as a major support area for the price, and the long-term bullish trend will be valid as long as the price stays above that support zone.
Price crossing above the 23.2 – 23.6 resistance area confirmed the double bottom pattern breakout and that gives a short term bullish target of 25.9 – 26.4 for the price.
The weekly chart
In the SLV weekly chart, we can see price is forming a bullish continuation rectangular pattern. Price crossing above the 25.9 – 26.4 resistance level will confirm the pattern breakout and we can get a midterm target of 32.3 based on the pattern breakout.
Also the weekly chart RSI bullish divergence signal suggests the continuation of the midterm bullish trend.
In conclusion, considering the daily chart and weekly chart technical aspects, SLV is short-term and mid-term bullish. We can get the short-term bullish target as 26.4 based on the recent break out of the double bottom pattern and the 32.3 level as the midterm bullish target.
Since we can observe a market gap formation and a wick rejection candle at the lower resistance level of the market gap, which is at 24.4 level, we can expect a price pullback to retest the 23.2 – 23.6 area before continuing the short term bullish trend. That will give the opportunity to buy SLV, preferably below the 24.4 level.
On the way towards its mid-term target at 32.3 level, the price will have some minor resistances at 28.3, 30.0 levels, which we can identify based on the trend-based Fibonacci levels for the previous midterm bullish trend.
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Hope this was useful for you! Please note that the above content is not an investment advise and shall be considered only for informative purpose.
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