Silver ended up pounding through the trend line, which is less important than the 26-27.50 long-term support area and the up-sloping SMA 50. While the silver squeeze promotion was hammered, the technical situation is intact and still bullish. As before, the caveat (not the advantage) is the hype. A gold (or silver) bug is a gold bug is a gold bug is a gold bug.
The longer-term chart continues to advise that if this backtest is successful and silver takes out 26-27.50 the next resistance – and therefore objective – is near 35. After that would be 50. But first, support noted above at 26 and the up-trending SMA 50 need to hold to support a new up-leg if one is coming in the near-term.
