Silver is trending up

Since mid July, SLV – the iShares Silver Trust – is in a high volatility uptrend. In fact, it’s moving between its 20-day exponential moving average and the upper Bollinger Band.

In this bullish trend we have marked two consolidation phases, the orange and the blue one, where momentum showed some weakness. Traders weren’t sure what to do and how to trade SLV and there was a fight between the bulls and the bears.

In the first consolidation case, the orange box, the huge gap up, demonstrated the bulls’ power.

In the second consolidation phase, the last session’s huge candlestick is a strong indication that the bulls are winning the second battle and are determined to push price up again.

The fact that the 10-day exponential moving average of price is mostly below price and sloping up is an indication that the short-term uptrend is still intact.

Finally, SLV’s Relative Strength has been moving up and above its 20-day exponential moving average since mid July.