Technical Help for Silver ETFs…Maybe

ETF Trends

Down 35.4% apiece this year, the iShares Silver Trust (SLV) and the ETFS Physical Silver Shares (SIVR) could use any and all available help.

SLV, the largest silver ETF by assets, closed at $18.96 Wednesday, just 7% above its 52-week low. Recently, Glen Ring, editor of View on Futures and a longtime technical chart watcher, and Andrew Thrasher, a chartered market technician and investment analyst at Financial Enhancement Group, believe silver’s July low around $18 could be retested, reports Charlotte McLeod for Silver Investing News.

There is concern that if silver futures dwell in the low $18 for too long, new lows will be right around the corner. [Silver ETFs Look Vulnerable]

There are alternative short-term views of the white metal. In fact, Hwang Il Doo, a senior metals trader at Korea Exchange Bank Futures sees upside to $22, about 16% from current levels, Jau Hur reports for Bloomberg.

However, there are conditions to that prediction. “If futures breach the 10-day average of $20.065 and the 18-day average of $20.569, this will create a golden-cross formation that is considered a bullish indicator,” Bloomberg reported, citing Doo.

It has been over two weeks since SLV closed above $20 and Nov. 11 was the last time the ETF closed around $20.60. [Silver's Slide: Worse Before it Gets Better]

Golden crosses are defined by an upward cross of a longer-term moving average by a shorter-term moving average. For example, golden cross would occur when an ETF’s 20-day moving average moves above its 50-day line.

A stronger example would be the 50-day line crossing above the 200-day moving average. SLV is almost 9% below its 50-day simple moving average and 15.4% below its 200-day SMA.

iShares Silver Trust

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ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of SLV.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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