Silver is usually a precious metals leader, both for better (up) and worse (down). Hence, we focus on it due to its implications for the PM complex, especially gold and silver miners.
The silver price dropped through and hammered at support at 30. That was our preferred support target. From the November 13 NFTRH+ update:
We had noted that there was support at 31, where a silver bull looking to buy might take interest. We also noted more support at 30. Better support, actually. That is still open, but was almost tested yesterday.
That better support was hammered and reversed yesterday.
However, we also noted the following in that update:
However, the way the precious metals usually roll is for drama at the end of a correction. So a quick drop and test of the uptrending 200 day moving average (orange) that makes a higher low to the August low of 26.41 or preferably, the September low of 27.67 is doable as well. That would sure put an exclamation point on the precious metals rally.
I wish I had a dime for every time I’ve seen a daily chart hammer candle not play out bullish (as it should), in the short-term. I’ll keep the next lower target (SMA 200 at 28.70) in mind, but also realize that silver has now hit and thus far successfully held the main support target of 30.
