Don't Ignore This Chart!

$SILVER Sits On Important Support


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

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at 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
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus