Silver ETF - SLV Closes Above Resistance

Gold finally broke it's down trend yesterday and that's all it took to allow the silver ETF - SLV to close above the final resistance at $28. SLV is once again trading above the 10, 20, 50 and 200 day simple moving averages. In other words, the bull market is back.

About a week ago silver made an outside day key reversal and closed on the high of the day. That was the initial indication that silver had reached a selling climax. At the same time the Gold Stocks held support at the 200 day moving average. Silver had been trying to rally the past week but gold remained below the 10 day moving average (steep downtrend) so silver was having a hard time breaking out. Yesterday gold cleared both the 10 and 20 day moving averages as the Euro came under renewed pressure. This allowed silver to punch through the final moving average and close at the high of the day. Silver will often go back and test the breakout, so if that occurs and SLV can stay above $28 that would be a signal to traders that the uptrend is still intact.