The jury has returned its verdict - "Silver has double-topped with its April highs". So silver bulls can forget about any new highs for a while. Although silver has powerful bullish forces underpinning it, the same factors that are set to precipitate an intermediate reaction in gold, principally a rally in the dollar, are expected to have a similar effect on silver, although due to the strength of the bullish forces at work in silver, it is considered more likely that a trading range will develop, lasting perhaps several months.
On the 6-month chart we can see the phoney break higher on Thursday, that failed to take the price well clear of the April highs, and the reaction on Friday that accelerated dramatically today, as the metals had the rug pulled out from under them by today's snapback rally in the dollar, mentioned as a growing probability in the big article on the site at the weekend.
Given the severity of today's drop, especially in gold, it is quite likely that we will see a minor rally over the next day or two, which traders should use to sell, with a view to repurchasing in the $12 area, where there is strong support bolstered by the proximity of the 50-day moving average.
The content on this site is protected by U.S. and international
copyright laws and is the property of SilverSeek.com and/or the
providers of the content under license. By "content" we
mean any information, mode of expression, or other materials and
services found on SilverSeek.com. This includes editorials, news,
our writings, graphics, and any and all other features found on
the site. Please contact us for any further information.
The views contained here may not represent the views of SilverSeek.com,
its affiliates or advertisers. SilverSeek.com makes no representation,
warranty or guarantee as to the accuracy or completeness of the
information (including news, editorials, prices, statistics, analyses
and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or
materials contained on or within this website, without the express
written consent of SilverSeek.com, is strictly prohibited. In no event shall SilverSeek.com or its affiliates be liable to any person
for any decision made or action taken in reliance upon the information