The popular silver ETF SLV looks to be poised for a major move higher. SLV has already risen 34% since the end of December 2011 following the precious metal higher on strong demand and tight supply.
As the chart below shows, SLV has just broken out above the blue downtrend line. This move also completes a bullish inverse Head & Shoulders pattern.
Chart courtesy of Stockcharts.com
SLV now looks set to continue higher, and I expect a spike to around $35.50 to be followed by a pullback to retest the downtrend line which should now provide support. I then expect a continuation of the up move, with a sharp gap up to around $38.00.
The next major resistance for SLV is around $42.78, a level last tested in August 2011.