Last Thursday, silver collapsed. After hitting a high of $33.00 the previous day on the iShares Silver Trust (NYSE:SLV), it dropped to a low of $30.96. This did some major technical damage to the chart. However, between last Friday and today, silver has roared higher, surging through the $33.00 level. The SLV is currently trading at $33.07, +0.51 (+1.57%).
The big question must be asked, will silver now break higher or collapse back down, utilizing a double top as resistance. The answer will be given based on the closing price of the SLV today. Should the SLV close below $33.00, the bearish case is still on the table. If the SLV closes above $33.00, there is a strong likelihood silver is going higher in the short term.
Silver is extended on most chart time frames but global instability and the perception of a massive global recovery is giving it life. Watch closely in the coming two days to see which direction this goes. Gold remains strong with the SPDR Gold Trust (NYSE:GLD) trading at $137.82, +0.44 (+0.32%).
Gareth Soloway
InTheMoneyStocks.com
