iShares Silver ETF (SLV) has been on very bullish mode for these two months after breaking out from the Inverted Head and Shoulders (trend reversal pattern) and retested the neckline SLV is expected to retrace into consolidation mode after reaching the 161.8% Fibonacci Expansion Level. Currently SLV is just sitting above 20D SMA support. Next critical support is at $17.00
http://mystocksinvesting.com/us-stocks/ishares-silver-slv/ishares-silver-etf-slv-in-retracement-mode/
Whilst in broad terms I agree with you (I bought some Fresnillo (LON:FRES) only last week) the positions of the commercials in the market scares me a little. Their number of short contracts is at a historical high I believe based on the Commitment of Traders figures. Of course, they could all be wrong but they usually are not and they can influence the market, especially in the smaller domain held by silver. If they are wrong and they have to cover these shorts the price will clearly rise but I'm keeping some powder dry to buy on the dip I feel is coming. Long term however, I feel holding precious metals (or the miners) is an important part of a portfolio, especially in these uncertain times.
