We’ll keep it simple in managing this morning’s decline. The silver support zone has been 19.50 to 19.75 (chart from NFTRH 300 below). The lower end of this range is getting tested this morning. Any lower than that and the situation becomes abnormal to a short-term bottoming view. A hold of that area ups the aggravation level but would probably be ultimately constructive.
Extrapolate the simple silver analysis above throughout your areas of interest in the precious metals and proceed accordingly. That 19.50 level, or immediately thereabouts, is very important to the short-term case on a daily and weekly (since today is Friday) closing basis. Silver is currently at 19.57, gold at 1293. Recall that gold’s support parameter is around 1270 to 1300. But we are watching silver as a leader here.
See you on Sunday, likely with a clearer picture of events.
