“What changed into resistance turns into help,” Todd Gordon stated Friday on CNBC’s trading country whendiscussing the ETF for silver futures, the SLV. “we’re free from the ceiling and equipped to transport better.”
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Gordon related the highs for the SLV courting again to April of 2012 and referred to that recent gains have taken the ETF properly above downtrend resistance. The metal‘s futures price is presently up 24 percent 12 months-to-date and the SLV is up 23 percentage within the identical time period.
The founder of TradingAnalysis.com additionally pointed to demand for silver out of China, in addition to a falling U.S. greenback, whilst discussing the important thing drivers for silver’s ability. On a weekly basis, Gordon tested a probable reversal following an inverse head and shoulders sample courting again to lastsummer time.
“we are gratifying what you would count on to peer, which is a spoil from the head and shoulders pattern,”said Gordon, who delivered that the ground formed off of the 2 most recent highs will function a release pad for SLV prices heading into might also.
From right here, Gordon is trying to the options market to establish a bullish function by way of promotingputs in an surroundings with expanded volatility.
“when volatility is luxurious, both puts and calls are also steeply-priced,” stated Gordon, whilst discussing his cause. Gordon’s pass calls for selling the SLV June 15.5 puts for 35 to 36 cents, as 15 is proper alongthe breakout degree, which have to maintain as assist
