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Swing Trade Idea (SLV) – February 06, 2024

Our bullish trade for Tuesday, February 6th is 

iShares Silver Trust (SLV). SLV is part of the Financial Sector, which traded at 3.09% over the last month, with SLV performing at -2.89% over the same period.

SLV found support at the $20.20 mark and from where further upside is expected as the price of silver and gold could aim higher amid tensions in the Middle East. We are playing a bullish Credit Spread which gives us a premium/width of 36%, which is an excellent risk/reward ratio for this trade.

As a close, if SLV were to trade below $20.20 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also want to consider cutting losses on this options trade if the value of the vertical spread moves above $0.72 Debit.