Possible Breakout Ahead For SLV

- Technical Market Commentary -

July 14, 2011 (FinancialWire) (By Frank Kollar) -- Shares of the iShares Silver Trust ETF SLV have been trading in a tight sideways band since its steep one-week sell-off back in early May.

SLV currently has a rising trend support line, from its initial lows at $33.32 to its most recent lows at $33.00. In addition, SLV is exhibiting a declining-trend resistance line, from rally highs of $37.60 to the most recent rally high of $35.75.

Those two formations create a pennant pattern for SLV, which typically break in the direction of the previous trend. In this case that trend was to the upside.

Gold bullion is again nearing its highs and a potential breakout. SLV could follow to the upside, but we recognize that is a risky trade, and sell stops must be used.

Support is for SLV is currently at $33.00.

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Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market and the 2008-2009 bear market his bearish positions resulted in substantial gains, all achieved by trading trends.

Kollar's research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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This and all original content authored by Frank Kollar are subject to proprietary trademark, intellectual property and copyright Laws. Copyright (C), Frank Kollar; All rights reserved.

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