Commodities Countdown

Silver Threatens To Make New 6-Year Lows

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Silver ($SILVER) sunk to test the most dominant lows of the year today. The close of $14.26 only has 5 intraday lows below this level and most of those are just marginally lower. The furthest away is 1% below today's low and that was 2 days after the equity markets marked the August 24th low. The precious metals trend seems to be maintaining its broad decline. Every rally has been a better chance to sell as the moves down have been longer than the moves up.


Looking at the wider picture, here is the 10-year weekly line chart. If the silver market closes down here on Friday, it will be the lowest weekly close in 6 years. Using Wednesday's close to set the red line, the significance of this level can not be overstated. It was a huge support resistance level from 2006-2010. Should this level fail to hold, the next major support is around $9.30 which is not exactly just a stone's throw from here. That would be a serious move of 36% lower.

All hands on deck to see if Silver support can hold. The recent changes in the $USD won't be helping the prospect of a bull market showing up anytime soon for Silver. I'll be covering off the precious metals on the Commodities Countdown webinar 20151112. Click to register and we'll see you Thursday at 5 EST.

Good trading,
Greg Schnell, CMT

 
 
Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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