Source: FinViz (edited by Short Side of Long)
Silver has been in a downtrend since May 2011, and more importantly since September 2012 (as seen in the chart above). Over the last 52 weeks, Silver is down 35% and year to date, the white metal has dropped 27%.
While the prices bounced off the bottom in late June and more noticeably in August, the overall trend still remains down from the technical analysis perspective. More importantly, the bulls have tried fighting back by creating a serious of higher lows, so the price find itself in a pressure cooker - a sort of imminent decision point.
- Which way will Silver prices break?
Focusing on the trade itself, it is important to exercise money management and short term trader discipline (totally different to the way a long term investor would operate). Finally, a trader can either buy (long) or sell (short) Silver via various ETFs just like a stock, so just wait for the market to break and follow the trend. An easy way to execute this trade would be by using iShares SLV (NYSE Symbol: SLV).
Chart 2: Easy way to play this up and coming trade, is to buy or sell the ETF