Silver Tries For Breakout, The Devil's Metal Fights Charts (SLV, SIL, SLW, PAAS, HL)

Silver is trying to make a breakout as spot silver has been trading between $28.00 and $28.20 most of yesterday and today.  Its chart is running into some resistance after having bottomed out at $26.50, which means that traders are on that cusp of deciding whether to add more silver or whether to just take profits.  A review of the iShares Silver Trust (NYSEMKT: SLV) is showing a flat day at $27.27, but Tuesday’s close of $27.27 on the exchange-traded product tracking silver compares to a closing price of $27.36 on July 30 and you have to go all the way back to the close on of $27.49 to find as higher close since then.

The ‘SLV’ hit a high of 27.60 on July 3 and a high of $27.39 on July 31 and August 1. The high print was $27.35 yesterday and $27.41 today.  If today’s close can get back above yesterday’s high of $27.35 then technicians are going to claim that silver’s strength is not dead.  Conversely, if shares close under $27.15 today then traders are going to say that the Devil’s Metal will have profit taking risks in the coming days.

The miners are up big on the day, but the Global X Silver Miners ETF (NYSEMKT: SIL) is up only about 1.7% at $19.42. Silver Wheaton Corp. (NYSE: SLW) with its $10.7 billion market cap is up almost 6% at $30.36 and Pan American Silver Corp. (NASDAQ: PAAS) is up 1.1% at $15.75.  Even the troubled Hecla Mining Co. (NYSE: HL) is up 1.1% at $4.69 on the day.

It is worth noting on the StockCharts.com chart below that the 50-day moving average is $26.94 but the 200-day moving average is up at $29.93.

JON C. OGG