Silver Looking Strong as a Commodity

Silver Looking Strong as a Commodity

The commodities space has become more and more popular in recent years, as global trading and investors has become more easily accessible through the internet.  Many newer investors in Australian are interested in gaining some exposure in these areas given the fact that strong gains can be made using trend following techniques.  When we look at some of the most popular choices in the commodities category, it is a good idea to look assets like oil, gold, and silver.  There is a wide variety of trading instruments that can be used to express a market view in any of these assets.

For example, those with some experience in stock trading might be familiar with the United States Oil Fund LP ETF (NYSE: USO), the SPDR Gold Trust ETF (NYSE: GLD) and the iShares Silver Trust ETF (NYSE: SLV).  These assets tend to be impacted by many different factors (with things like supply and demand, and with geopolitical issues).  So, it is always important to watch these factors when looking to place real money trades.  But when we look at overall trading this year, it appears as though silver just might be the standout in this category.  So, here we will outline some price levels that might be used in order to establish trading ideas in the commodities market.

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iShares Silver Trust ETF (NYSE: SLV)

Critical Resistance:   17.60

Critical Support:   14.80

Trading Stance:  Growing Bullish

(Chart Source:  Swiss Forex Broker)

SLV / Silver Trading Strategy:  At the moment, silver prices are trading at relatively low levels and this makes the asset cheap when compared to other asset classes.  Those looking to buy might do so if prices reach historical support levels in the 14.80 region.

Market prices in SLV are starting to look encouraging given the lack of downside and the lower pricings that are currently in place.  If traders are looking places to potentially buy into these markets, one idea is to look for prices to move back toward the historical support level that can currently be found at 14.80.  If this approach is taken, it would generally be considered to be a good idea to take profits once prices move back toward resistance at 17.60.  This creates the strong potential for gains for Australian investors that are looking for ways to gain exposure in the commodities markets.