Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Is Silver About to Explode Higher?


Silver Wheaton, Coeur D'Alene Mines, and Hecla Mining look good, but they'll eventually need actual silver to move higher.

Now here's where things get interesting. Turning to the iShares Silver Trust ETF (NYSEARCA:SLV), it formed a doji on a weekly chart last week. Dojis are a sign of indecision, and in a lot of cases can signal a change in overall trend. They are found using candlestick charting and look like a plus sign. Then throw in the fact that it happened on a weekly chart, and I think it adds more credibility. Below is SLV.

What I like about SLV here is that ti's had some significant bottoms and tops before when using dojis. In fact, one nailed the major April peak last year. Could last week have been a major low for SLV? My take is yes, given the action in the individual names. I think the stocks will lead the metal higher and are predicting higher prices for SLV.

Lastly, we've noticed that short interest on SLV can predict its trend. Short interest soared last year into that major peak, then dropped right along with the price. Lately, short interest has been trying to move higher. Should we also see a jump in SLV short interest, that could be the final piece to the puzzle -- SLV (and probably the silver stocks) are due for a big move higher.

(Chart below courtesy of Thomson Reuters.)

Click to enlarge

This article by Ryan Detrick was originally published on Schaeffer's Investment Research.

Below, find some more great content from Schaeffer's Investment Research:

Cisco Systems Bulls Bet on a Short-Term Advance

Pessimism Builds Ahead of Dendreon Earnings

OpenTable Traders Buy Pre-Earnings Call Options

Twitter: @schaeffers
No positions in stocks mentioned.
Featured Videos