Chart of the day

Where do we stand fundamentally?

The iShares Silver Trust (SLV), which tracks the price of silver, has been under pressure recently, declining slightly to $27.45. This drop reflects broader market dynamics, including shifts in demand for precious metals and investor sentiment. Silver prices were generally strong in 2024, with earlier highs driven by geopolitical uncertainty and the industrial market. Investors are weighing silver's role as a hedge against inflation and its use in emerging technologies like solar panels and electronics

SLV pulled back to 27.5 support and we need to see a break above 29.60 for an extension higher in the third wave. An extension upside from here in the case of a break above 29.60 can lead to a test of the 44 level and higher in the extended third upside wave.

A break below 27.5 will invalidate the upside extension and could lead to a deeper pullback to 22 which is strong support for an upside continuation.

_{You can take a long trade entry with a stop loss below 27.40 to target 44 and higher. If you are a conservative trader and willing to risk less, wait for a break above 29.60 to take a long trade. Trade it with a call option as well.}