The iShares Silver Trust have been some of the best, most rewarding trades for me and the students at Tradesmart University in quite some time. We really waited for some perfect trades and some of them took months to play out.
RECENT TRADES
We’ve been bearish and gotten into bearish trades at $29.66, $28.56, $27.12, and $25.31, which was my favorite trade! I purchased May puts and was rewarded the next trading day with a 200% return on my investment. I invested $478.12 on the trade and sold it Monday morning, 4/15/2013 for $1,286.85.
The $27.12 trade, as you might recall, was one I wrote about recently here on TraderPlanet (Catch More Profits In Bearish Silver Trade). I hope your analysis confirmed, or perhaps at this point you simply are more intrigued!
THE OUTLOOK
SLV is bearish, without question – a bearish trend with everything bearish. As I write this at 11:42 a.m. 4/17/2013, a gorgeous three day pennant pattern is forming. There is perfect declining volume in the middle of a strong support/resistance zone. A continuation is likely possible if we trigger $22.32 and then $21.88.
KEY LEVELS
If you are an Elliot Wave aficionado you would likely agree we’re in a wave three of three bearish move. Wave four will likely begin around $21.00. I’m not sure how long the sideways move and retracement will last but a break of that support will be a very strong bearish signal.
I do feel SLV will come back to test the gap around the $24.00 area. With some reversal signals there, it could be a great place to leg into some bearish positions and have a great risk to reward ratio.
This has been a great trade so far. Let’s do it again!
