SLV iShares Silver Trust has been in a slump since the Wall-Street Silver short squeeze. SLV had a 52-week high of 24.90 and has slumped below $17 since the stock has had a 27% retracement from highs and is down 9% the past 3 months. Let’s take a look at the chart.

From the yearly chart above we can see that SLV nosedived from August and began its bounce early September. The William Volume accumulation indicator still shows a bullish divergence as well as the volume price trend. We will be watching for the 17.80 support to hold. Resistance can be found at 18.34, 18.62 and 18.88. If SLV can break through 19.00 area, we believe SLV can break into the $20’s.

Also, to note with an artificially strong dollar this doesn’t help an SLV bullish case, but we believe that a bullish dollar can and will flip in the coming months. If this happens, we could see a major reversal for SLV. Also, to note premiums on physical silver have been much higher than SLV and silver spot price. We believe these prices should contract and become closer together. An example of physical silver prices on US Silver eagles can be seen below.

Disclaimer: we are not financial advisors or brokers. This write up is an opinion piece on what we think may happen. We are not accountable for trades, or purchases of slv or silver from our posts. The reader should conduct their own Due Diligence before making an investment or purchase.