Don't Ignore This Chart!

$SILVER Sits On Important Support

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Silver ($SILVER) collapsed this week to the same level where support has been found before. The $18.61 level is critical for $SILVER. There is a small chance at $18.17 to find support but Silver needs to get up and go from here. 

The role of the $USD has been discussed many times in applying pressure to the commodities. Without question, the last 8 weeks have been rough for the $SILVER metal. This week, $SILVER did go as low as $18.45 but bounced to close at $18.62.

Consensus is very one sided on both the dollar long and $Silver short. Eventually support fails when tapped enough times. However, with the upcoming week containing the  volatility of the Fed meeting, the Scottish vote, Quad witching on Friday and a change in the bond behaviour last week, all would be a reason for $SILVER to bounce or breakdown. While its too tough to call which way it will move, investors should have a big opportunity with all the volatility on tap. 

Good trading,

Greg Schnell, CMT

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he 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 Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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