Tuesday, May 26, 2009

My trading friend, KM703, offers us this daily chart of SLV, the Ishares silver ETF. In fact, he offers it just in time!

Click for larger, Browser back.

Since Price is above the 20ma, and above the rising 50ma, this is pretty safe. Further, KM shows that key resistance points have been broken and there is plenty of room overhead for growth. The upper Bollinger Band has opened up, Volume is on the rise, and resistance at $15 seems to be pretty weak compared to the current level of momentum.

I am equally encouraged by the 30 minute chart which shows no intention of pulback.

Here is an interesting article about (among other things) commodities buying in China.

is a goldmine of commodity vehicles, some will be great investments rite now.

Update: Here is a great article on copper.

Thanks KM! You can contribute here anytime.

Update: There was a huge pullback this morning. I took advantage and bought in. I have placed a % trailing stop to sell just so I am protected... I don't plan to 'work' this one, I hope to hold it for at least a few weeks.

1 comment:

  1. mike,
    That's definitely a weekly chart.
    Very early this morning (5;30ish) I read a headline implying this weekend's N. Korea military actions bolstered the $USD, which I expected SLV pullback sharper than what actually occurred and very probable DXO rally. Still not a bad d/t but a few weeks should unfold as the better deal.
    I didn't yet read the articles you provided, but my main sources have made it clear China is buying commodities like candy, particularly, copper.
    Thanks for the additional insight that I didn't catch that you gave on this etf.