Exchange traded funds that invest in silver have traded in a range recently after falling nearly 30% from their peak in late April. Some technical analysts are marking out the key levels to watch now that silver ETFs appear to have found support in the short-term.
The iShares Silver Trust (NYSEArca: SLV) was up more than 3% Wednesday and was trading above $34 a share. The ETF has pulled back 27% from its April 28 closing high of $47.26, said David Chojnacki, a market technician at Street One Financial, in research prepared for ETF Trends.
Chojnacki said the ETF recently found support at the $32.50 level. If the silver fund cannot penetrate above the trend line which sits just above $35, then it will likely retest support.
“There is additional support below at $30 and we find a congestion area between $27.50 and $30, which would also provide support on the downside,” the analyst said.
A break below the 150-day moving average of $31.31 would be a warning sign of the possibility of a break in the longer term trend.