The daily futures chart makes it clear. Silver had a pre-market whipsaw up and back down this morning and it remains on consolidation at short-term support, locked below the down-sloped 50 day average. It retains the potential to break upward from this consolidation, where it would find the noted resistance, which is significant, and just above that the SMA 200 at around 17.
Here’s the story. Silver must not lose 14 again or it could disqualify the March plunge as the final shakeout and reactivate a disgusting target that we are carrying. That target is much lower, as in puke the bugs lower. The support at 14 is of very long-term significance not shown on this daily chart. But it is there alright. Above that is the aforementioned short-term support. So a big failure by silver is not nearly in the bag, but if it does fail it’s likely going appreciably lower.
If it does not fail it would set about dealing with upside resistance. Take that out and the silver bullet is in business. See, isn’t that great? Man stares at chart of silver and tells you it’s either going higher or lower. :-)
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