Paper Silver gets tombstoned going into the weekend, despite market bull trap this morning.
Paper Silver gets tombstoned
Daily chart on SLV not looking to hot and approaching 52-week lows. So far two supports have broken in the daily drop, we will be watching for the 3rd support to hold at 16.64 and or 16.84 resistance to be reclaimed to become new support. SLV is still trading above the 20-day average volume and the MACD is still pointing for a bullish reversal. The yearly chart could be poised for a double bottom as well.
We prefer buying physical silver over the paper silver for these reasons, however if timed right trading slv can be lucrative especially when selling puts or call options. The disconnect between paper and physical silver is very telling.
Silver American Eagle (BU) – $18.89
from: Money Metals Exchange
Disclaimer
This is not financial advice and is our opinion. please contact your investment advisor before making any trades as you can lose your entire investment.