Silver ETFs May End 2014 on a High Note

ETF Trends reported that though silver ETFs have performed poorly over the last six months, investors who stuck around are now being rewarded. In the past month, the iShares Silver Trust (ARCA:SLV) and the ETFS Physical Silver Shares (ARCA:SIVR) have risen an average of 8.4 percent.

As quoted in the market news:

Peter Brandt of Factor LLC, a proprietary trading firm and provider of research to institutional clients, outlines some important technical reasons why one of the worst bear markets in silver’s history may be drawing to a close and why a significant rally could ensue.

‘The decline from the April 2011 high has taken the geometric form of a falling wedge. Falling wedges are a common formation to correct a previous bull trend. It must be noted that the completion of a falling wedge seldom results in a ‘V’-extended bottom. Rather, wedges tend to produce a ‘backing-and-filling’ or ‘rounding-out’ advance,’ notes Brandt in a post on StockTwits. ‘The decline to the December low finally met the target of the bearish rectangle completed in April 2013.’

Brandt notes that December is a big month for silver, pointing that if the white metal’s price remain firm ‘the monthly chart will complete a sweeping key reversal — and this is a powerful sign the bottom is in place.’

‘I think a logical place for a rally to stop over the next year or so will be a test of the bank of lows on the monthly chart at around $26,’ he said.

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