Yesterday we noted for our subscribers that all of the action in the iShares Silver Trust ETF (SLV) from the July 19 high at 40.39 into Monday's low at 37.93 represented a secondary retest of the July upside breakout plateau -- and that the upmove since Tuesday represented the start of a new upleg. We noted the SLV should climb above 40.39 on the way towards our next optimal target zone of 42.30/60.

So far today, the SLV is following its optimal technical path. Let's notice that today's strength has surged above both the Apr-Aug resistance line at 39.30 and its prior rally peak at 40.39, which is very constructive action.

As long as the SLV remains above key near-term support at 39.90 down to 39.50 on any weakness, then the overall technical set-up remains intact for upside continuation towards 42.30/60.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.