PPR - Discussion of SLV Action

Published : February 23 2012 at 10:29 ET

The SLV is pushing up against its 200-dma and making a move to bust through. Whether this is a pocket pivot or not as it breaks out thru the 200-dma is not really relevant, since a high-volume move through the moving average would be constructive on its face. The other aspect of a breakout thru the 200-dma is that the 200-dma also provides a downside guide if one chose to add to an SLV position on the basis of a 200-dma breakout. Keep in mind that the SLV also has overhead resistance at the 34.44 level, which could also come into play. But adding to SLV here is aided by the fact that the 200-dma provides some downside reference point for a stop.

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