We last highlighted the i-Shares Silver Trust (symbol: SLV) back on January 13, 2012 and then again on January 23, 2012. We initially identified the key pivot point that would break the down trend, and this was at the 28.83 level. Since then SLV has moved higher, and it now stands at the first resistance level we identified back on January 23. This is the 33.35 to 33.75 resistance zone, and this can be seen in figure 1, a weekly chart of SLV. The down sloping 40 week moving average is obvious resistance as well.
Figure 1. SLV/ weekly
So how should we use this information? The fundamentals — currency devaluation — remain strong for precious metals. Nonetheless, I would look for selling at these levels, but willing buyers should emerge on the dips.