The iShares Silver Trust ETF (SLV) acts very powerfully as the price structure continues to stair-step higher within a well-defined trend channel in the aftermath of the completion of the May-Aug. bullish coil pattern. The optimal target zone for the completion of the current upleg is 19.90-20.00.

Only a decline that breaks and sustains beneath 18.95/90 will inflict meaningful damage to the upleg off of the Aug. 24 low at 17.39. From a micro chart perspective, a violation of 19.09 will be my first indication that the SLV might be in need of a rest-digestion, corrective period.

 

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