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.
Greg Schnell, CMT