SIL (Silver Miners ETF) Review – 29th April 2025

Weekly Chart

On the weekly timeframe SIL (from a broader perspective) is looking corrective within a contracting range; from 2016 price has never managed to hit the previous high or low. Divergences are showing on all indicators which indicates price may be on the verge of reversal.

Despite the potential for the reversal the current uptrend is still intact; price is above both EMAs and the 9 week EMA is still above the 36 week EMA indicating there is still a bullish sentiment although this may be weakening and so it is imperative that caution is taken. Maintain a bullish strategy unless trend is broken and price breaches $33 level.

Daily Chart

The daily chart presents a clear picture of the current underlying price action. Due to the various overlaps of price, it is very difficult to build a case this is a genuine impulsive rally or trend. Buyers have not been aggressive enough with driving prices higher and although price is still expected to rise. This is due to the count of waves not being completed and after this assumed correction phase the market is going through, one more wave up is expected before a reversal. All indicators on the daily are also showing a divergence. As per the commentary on the weekly chart, it is advised to that this a potential warning not a trigger to short. Expectation is for price to correct lower and possibly find some support around a 50% retracement or on the 63-day EMA.

1 Hour Chart

On the hourly timeframe we can see the pull back has been corrective (3 waves down). The general rule if price action is corrective, then assume the main trend is still on. The ADX line going lower since the peak also indicates price is declining on weak momentum which is a sign that sellers aren’t acting with conviction and the market is not ready to reverse. The strategy will be to wait for prices to settle, possibly around $38 and look for entry opportunities. There is a possibility that price doesn’t go lower and resumes the uptrend quickly; if price closes above the recent high at $42 with strong momentum, enter a buy trade targeting $48.75 to $52.50 as potential exit points.