Silver (SLV) Heating up
Silver after the gap down Monday showed impressive strength and buying pressure. Lets take a look at the 10 day and daily chart.
Buy looking at the 10 day chart we have gaps all over the place which have filled. We now are looking at a gap to fill up to 24.50 before any significant move. SLV closed at $23.95 down 1.5% on the day. SLV is showing support at 23.78 and 23.62. We saw SLV hit that 23.71 slightly below support before ramping right back up. SLV has resistance levels at 24.03 and 24.11. I suspect those resistance levels will get crushed to fill gap this week.
When we look at the daily chart for Monday, we can see impressive buying coming in towards 12:30PM as well as end of day buying. The William Volume Accumulation indicator is showing us a bullish signal as well as the volume price trend. SLV had 10.7 Million shares to buy side and 9.2 million to the sell side, So the drop this morning clearly got picked up based on those numbers.
Key items to watch this week Bond auctions will be taking place this week, as well as Biden's administration putting together a $ 3 trillion dollar economic plan. With these two pieces looming I suspect more money flow will go into the metal sector. Stay tuned for more silver and SLV updates.
Disclaimer: We are not investment or financial advisors. We currently have no position in SLV but that does not mean we will not be taking a position. This is not financial advice and you may lose your entire investment from taking this advice. This is our opinion only.
