Silver SLV ETF Trading Goes on Higher with the Dollar Depreciation.

By: Mark Brown A Click author's name for more of his/her articles

One precipitated by the global credit crisis and the massive rush toward liquidation of commodity futures contracts - at any price - that ensued, and a year ago, Silver and slv etf was in the midst of a severe price correction. The price of Silver plummeted from almost $21.the way down to the sub-$9.
Double Zero range makes most commodity investors believe that this bull marked would not ever get to prices that high again. the technicals depicted on the following chart should be enough to convince all but the most hardened skeptics that Silver is alive, well and quite possibly enmeshed in what could be its most powerful bull market to date.
Silver SLV ETF Graphic credit: Metastock v.Comparing equity prices to some of the vital moving averages is an excellent way for any technical analyst to decipher the probable future direction of any given stock or commodity. Pay special attention to the red and blue curved lines, which denote the 50 and 200-day exponential moving averages on the chart above. (also called EMA's) The exchange-traded fund that closely tracks the cost of cash silver is SLV. The green oval, on the left side of the chart depicts the location of a bullish 'Golden Cross' of the 50-period EMA above the 200-day EMA. Traders and technical analysts would easily sense this as a prelude to shooting up of prices It may not be a 'fail-safe' scientific marker, but it can do a fairly acceptable job of predicting upcoming price trends across several markets. SLV is obliging with a period of sustained follow-through, despite having endured a sharp sell-off in the wake of the recent 50/200 Golden Cross.

The focal point to recognize here is that all three trends are synchronously climbing upwards, optimal for achieving maximal returns. Pullbacks, as most professional traders are aware of, are strongly supported by both 50 and 200-day EMA's. (mainly during the period when EMA's are flat or sloping in upward direction), usually offering comparatively secure 're-entry' points for skilled traders and investors. You will need to study each color of oval shapes in order to get examples of the mystery.
There are other reliable ways for technicians to figure out if SLV is a lasting trend; the Aroon is plotted on the bottom of the chart. Number Fourteen indicating the intensity of trends With a similar concept to the Average Directional Indicator, which is more common. (Average Directional Index)This is an indicator that will attempt to measure how strong a trading move may be. we see that every time that the blue Aroon There are fourteen of these red line that a meaningful trend move took place in SLV.
While nobody could be certain how far this specific move would go, if past Aroon Number Fourteen crossovers are any signals, SLV might still have a bit of room to move to further heights. SLV's weekly graph seems to have found its way into a likewise buoyant Aroon soon enough. Number Fourteen SLV which may be another clue posture. You can expect to get cash for your silver. The market is poised to possibly match and surpass the March 2008 peak.
There's much optimism for the silver market trend as several critical external factors are furthering strengthening and thus pushing momentum forward for this commodity.
o They have the worlds' biggest short futures contract position on any commodity in any market, making them a major player.
With 'leased' Silver and unbacked 'Silver Certificates there are Possible repayment issues.The Silver story has a lot more, but many traders and investors are starting to realize - beginning in 2003 through 2008, Silver prices have gone up by 5 times, long-term fundamentals are implying that a larger increase could still be on the horizon. With the approach of a new decade, it's a good time to get some guidance on how best to deploy some of your investment funds in the attractive silver market.

Article Source: ABC Article Directory

About The Author: For more technical trading analysis and trading signals please join my free newsletter: www.ETFTradingPartner, com, Mark Brown.