Let's have a look at the chart of the price of silver:
1) trendline is rising
2) price reached 16$/oz in early June and then pulled back to 14$
3) the 200 daily moving average is turning up for the first time since July-August 2008
4) we can clearly see that the support level is at 14$ and the resistance is at 16$
5) now what? my expectation is for silver to rise back up to 15-16$ and then break out above 16$. This scenario would be cancelled is price falls below the trendline around 13-13.5$.
6) Do I buy? not yet. If price stays above 14$ the coming week, I will start buying and add more to my positions if price breaks out above 16$.
How can you buy silver? an easy way is to do it through the ETF iShares Silver trust ETF (ticker: SLV) listed on the New York Stock Exchange.
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