Alert: A Buying Opportunity in Silver
Add SLV now.
Silver was down to take out last week’s low point yesterday. It moved down through $33 on a second test of its 100-day moving average but then settled above that level.
The daily moves in silver remain large on a percentage basis. As I discussed in Currency Currents yesterday, this move in silver now qualifies as a three-wave corrective move on a daily chart. I want to add now to capture a potential bounce in the price of silver should it occur soon.
I recommend using SLV (iShares Silver Trust). Since silver’s moves are so sizable of late I think using SLV (an unleveraged ETF) is the best bet as it allows us some additional breathing room on the downside. [More aggressive traders might consider buying AGQ instead.]
Note: I am not writing off the risk off additional commodity market downside, but I do think the downside has become a bit exhausted. And should the market-wide risk-aversion subside, then we’re in on silver at an excellent price for the long-haul.
Let’s put out an order to add SLV now.
SLV (Last Price: $34.67)
Buy shares of iShares Silver Trust, symbol SLV, at the market. Then place an order to SELL ALL your shares of iShares Silver Trust, symbol SLV, at $31.00, STOP. This order is good till cancelled.