Per a subscriber’s request, let’s take a look at the silver futures as it stands at 11:25 US ET.
The silver price stopped right at the resistance level we’ve been noting at 18.90 and is now pulling back. All good, all normal, all anticipated if not predicted.
The first key area is 17.45, the next is the SMA 200 at 17 and the most important is the area surrounding 16.50, which would become even more important if/as the SMA 50 (15.86) continues to rise toward it. It’s important to note two things… 1) This pullback probably always was going to happen from the point it did happen (recall Silver/Gold ratio in the yellow box caution area) and 2) it never did break out.
So the bottom line is that silver is doing a thus far normal pullback from a point it should be doing it but it never did go bullish by taking out the two previous highs not to mention the 2019 high. A further note is to repeat that silver does not enter a bull market until it takes out the 2016 high of 21.23. My guess is that a bull market is in the offing, but you know the story… volatility, nothing comes easy, especially in the land of the silver bugs.
