By: Guy Lerner | Fri, Feb 26, 2010
Print Email

Just when I get all poofy about some market "call", here comes Mr. Market to deflate my bubble.

Two days ago, I wrote "Did You Sell GLD, GDX, SLV?", and in my poofiness, I had the top in metals correct, and based upon the recent price action, I suggested that i-Shares Silver Trust (symbol: SLV) was vulnerable. In particular, I felt that SLV was essentially at resistance and in the face of a weak market and declining sponsorship (i.e., decreasing OBV), it appeared to me that SLV would test support (at 14.78) before breaking above resistance at 15.87.

If the price action over the last two days is any guide, I am wrong! Deflaticus! Maximus!

Figure 1 is a daily chart of the i-Shares Silver Trust (symbol: SLV) showing prices moving above resistance (albeit on sub par volume today).

Figure 1. SLV/ daily

Of note, and by my account the weekly chart (in figure 2) has yet to turn up. In fact, it appears that SLV is just hanging on to rising trend line support at the 40 week moving average. In a sense, this represents a low risk entry point from a technical analysis perspective utilizing the new level of support (at 15.87) as either a place to buy and sell. In other words, buy near 15.87, and sell if prices go back below this level. If SLV fails at this level of support (15.87), then it is look out below.

Figure 2. SLV/ weekly



Guy Lerner

Author: Guy Lerner

Guy M. Lerner

Disclaimer: Guy M. Lerner is the editor and founder of The Technical Take blog. His commentary on the financial markets is based upon information thought to be reliable and is not meant as investment advice. Under no circumstances does the information in his columns represent a recommendation to buy or sell stocks. Lerner may on occasion hold positions in the securities mentioned in his columns and on the Web site; in all instances, all positions are fully disclosed at However, their positions may change at anytime. For more information on any of the above, please review The Technical Take's full Terms of Use and Privacy Policy (link below). While Lerner cannot provide investment advice or recommendations, he invites you to send your comments to:

Copyright Notice: Except for making one printed copy of this newsletter or any other materials, files or documents available from, accessible through or published by TheTechnicalTake, LLC for your personal use (or downloading for the same limited purpose), none of these said materials, files and/or documents may be reproduced, republished, rebroadcast or otherwise re-distributed without the prior expressed written permission of Guy M. Lerner.

Copyright © 2004-2012 Guy Lerner

All Images, XHTML Renderings, and Source Code Copyright ©