SLV closes higher for the 2nd day in a row
iShares Silver Trust (SLV) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SLV ended the week 0.12% higher at 16.56 after gaining $0.10 (0.61%) today ahead of tomorrow's Presidents' Day market holiday.
Daily Candlestick Chart (SLV as at Feb 14, 2020):
Friday's trading range has been $0.08 (0.48%), that's far below the last trading month's daily average range of $0.17. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SLV.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 16.44 (S1). Prices are trading close to the key technical resistance level at 16.64 (R1).
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 16.66 where further buy stops might get activated. With prices trading close to this year's low at 16.27, downside momentum could speed up should the market break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Its common bearish interpretation has been confirmed for SLV. Out of 55 times, SLV closed lower 58.18% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 63.64% with an average market move of -1.09%.