Walls Close In on Silver (SLV) and Precious Metals Traders

July 9, 2012 5:09 PM EDT
iShares Silver Trust ETF (NYSE: SLV) closed higher on Monday with the spot price of silver trading at just over $27/oz. The price of silver is trading in an increasingly tight and choppy range with $26 providing support on the downside, and $28.50 and $30 keeping a lid on any potential upside breakouts.

iShares Silver Trust ETF (NYSE: SLV) is flat on a 5 day chart, and lower on both a monthly and yearly basis. On a technical view, the trend is clearly to the downside, say traders, but with $26 providing such solid support, many are arguing that the price has no where to go but north.

On the other hand, there isn't a good reason why silver can’t continue to trade sideways. If so, it will be a very uneventful quarter for the precious metal, and it could be a severe case of the July doldrums. Trading silver and SLV in this range might be a little like watching paint dry. But then again, silver is a precious metal, after all, and anything can happen.

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