SLV Heading to $25. Per Share
Here is a 2 year chart of SLV the etf that tracks silver. You will notice that since the March top of 2008 SLV has been trading in right triangle and rectangular patterns. It has broken through the hypotenuse of the major right triangle price formation and is in an intermediary uptrend channel that is now challenging the longer term uptrend channel from the Oct. 2008 lows. The last time SLV hit the top of this channel it pulled back only to the mid-point. In the meantime the macd and momentum appear to be turning positive at this critical juncture and volume appears to be picking up. It looks like SLV is about to break out of its trend channel and eventually move to new highs. The projected price target of $25. is computed by subtracting $8.76 (the Oct. 2008 low) from the price that is equal to the shortest distance to the hypotenuse and then adding the result to that price. I have marked that distance with a line. That calculates to $17.00 – $8.76 = $8.24. $17.00 + $8.24 = $25.24. If this price calculation works out that equates to approximately a 43% return on SLV from it’s current price of $17.44. It took about 1.5 years for this chart pattern to form. I anticipate the move up to be significantly quicker.
