The highly popular Ishares Silver Trust (NYSE:SLV) has made a new high for 2010 today. The current chart pattern for the precious and industrial metal is very strong as silver has surged higher in the recent market rally from August 24th when the SLV was trading around $17.50. Whenever a stock or ETF makes a move of this size in such a short period of time it will usually need to pullback or consolidate before trading higher. Therefore, it would not be surprising to see institutional traders take profits from Ishares Silver Trust at this level. The next important resistance level for the SLV should it close above the $20.00 level would be around the $21.50 area.
Silver Wheaton Corp.(NYSE:SLW) is another leading silver stock that is trading at new highs for 2010. This stock is still in a very strong chart position and continues to consolidate from September 9th when it traded as high as $24.72 a share. The next important resistance area for Silver Wheaton Corp. will be around the $25.50 area. Should the actual silver metal pullback soon expect Silver Wheaton Corp. to consolidate further.
Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
