But, there are a couple factors that could signal, at least in the short-term, SLV may see some upside.
First, price action was able to trend along support at $13.35/30 that was created back on August 26, following the Black Monday event in equities; and it also represents a solid line of support on the weekly chart. Secondarily, the three percent move off of support was coupled will back-to-back sessions of heavy positive .
There is a daily convergence in the +/- DMI , which suggests that positive price action is taken favor. The non-directional biased is slopping downward, too, which may mean the downward trend could be taking a pause.
Even with some positive technicals, Friday’s move was fairly big and can tend to muddy near-term projections. Bulls still have several key resistance levels ahead of them, including dynamic resistance of both the 50- and 72-day . However, if SLV can close above $14.10, traders could see a near-term boost to $14.42 and, potentially, $14.75.
There is some interesting options action, too. According to Nasdaq, there was particular options of interest in the January 2016 chain. The put contract at the $13.00 strike has a current bid of $.32, so if a trader was looking to sell-to-open, there would commit to purchasing SLV at $13.00/share but also receive the $.32 premium. This would then reduce their cost basis to $12.68. Not bad considering that it closed Friday at $13.87.
Precious metals received a boost Friday, after ECB President Mario Draghi promised there were “no limits” to the implementation of tools in the wayward attempt to spur growth via long-term monetary intervention.
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