Although the action in spot silver is a bit uneventful, the near-term technical picture and setup remain relatively positive, and argue strongly that spot silver is poised to move higher into the 42.80-43.20 target zone. This bodes well for traders of the iShares Silver Trust ETF (SLV).

At this juncture, only a decline that breaks and sustains beneath 41.10/07 will mildly compromise the developing pattern, while weakness that slices beneath 40.00 will inflict more serious damage to the near-term technical setup.

 

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