Today’s strength in the iShares Silver Trust ETF (SLV) argues that all of the action from the May 12 rally peak at 14.06 to yesterday’s low at 13.42 represents a completed pullback within the upleg that started after the April 17 low at 11.64.

My overall work in the SLV points to another upmove, which likely started today, that should hurdle key resistance at the prior high (14.06) on the way to an assault on the February high of 14.45. Let’s notice that if silver prices and the SLV really attract buying interest, then a vertical thrust towards the top of the October-May price channel could very well unfold -- propelling the SLV to 15.50-16.00. Only a reversal and decline that breaks yesterday’s pullback low at 13.42 will compromise the very constructive technical setup.

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