SLV closes within prior day's range after lackluster session
iShares Silver Trust (SLV) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SLV ended the week 3.42% higher at 16.04 after gaining $0.08 (0.5%) today ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SLV as at May 22, 2020):
Friday's trading range has been $0.17 (1.07%), that's far below the last trading month's daily average range of $0.26. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SLV.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the close-by swing low at 15.71 where further sell stops could get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SLV. Out of 38 times, SLV closed higher 63.16% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.89% with an average market move of 1.32%.