Silver Pull Back

After 7 consecutive days of rising prices, profit taking finally hit this shining metal, silver. For those traders that went long when silver was hovering around the 20 EMA near the mid 38 level, taking some profit here seem to be a prudent thing to do.

This pull back in silver prices does not appears to be a trend reversal. The price actions still pointing toward potential higher prices until a technical breakdown has occurred to indicate otherwise. The level to watch for possible support for the silver future SI_F is near 40.40 and for the ETF, SLV is 39.30 (near their respective 20 EMA).

SI (silver future contract):



SLV (silver ETF):




Disclosure: No position.

Silver On The Move

Silver is on the move once again after spending couple months building a base near the $33 area.

SI (Silver Future Contract):



Looking at its ETF price chart, it has formed a base near the 32.50 level. After having completed its test for support near the 36 level, it has broke above the previous pivot high of 41.73. This breakout appears to be forming a higher high/higher low price pattern that could lead to a new high.

SLV (Silver ETF):



Disclosure: Long on SLV

Silver Watch

Silver appears to be coming down to test the $33 an ounce level once again. If it breaks below this level, it can very well be headed down to the $26 level this time.