Silver News: Will the price continue to move lower?

However then actuality hit, and as is commonly the case it wasn’t fairly.

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SLV, the unleveraged US buying and selling proxy for silver, fell 7.6% in two brief weeks between Feb 20 and March 7, dashing the hopes of silver bulls all over the place.   The chart exhibits a transparent failure to rise above earlier resistance at 15.20, stopping at 15.21. You possibly can’t actually name this a head-and-shoulders scenario, it’s old school resistance degree.  And because the two peaks are so shut collectively we don’t have to fret about time decay or something like that.

The true query now could be how low can silver go?  For that, we have to have a look at a longer-time chart.

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That’s not a really fairly image.  The 5-year chart for SLV exhibits a low of 13.04 again in 2015, which was confirmed twice final yr with dips all the way down to 13.11. From the place SLV is true now at 14 there isn’t any signal of assist till 13.50, then only a trace there.  Subsequent cease down is the 13 degree.

After all, these are SLV costs.  Translating that to worldwide silver costs, we discover nearly precisely a 1-point distinction.  So worldwide silver is just under 15 this morning and searching weak.  If it does proceed down, subsequent cease is at 14.50, then the 5-year backside down at 14.00.

How seemingly is it that we are going to see silver drop extra from right here?  Your Gold Fanatic thinks it’s fairly seemingly, since merchants have been beginning to load up on lengthy silver a couple of months in the past.  Most of these positions have been in all probability unwound by now, however the steps down to this point have been managed, no indicators of sudden capitulation like we often see simply earlier than actual bottoms.  So we’re suspecting there may be nonetheless yet one more leg down from right here, if not two extra all the best way all the way down to the 5-year lows.

Buckle on the parachutes, this may very well be a sudden drop.  Then prepare to purchase!

Signed, The Gold Fanatic

The iShares Silver Belief (SLV) was buying and selling at $13.89 per share on Tuesday afternoon, down $zero.19 (-1.35%). 12 months-to-date, SLV has declined -13.13%, versus a 10.18% rise within the benchmark S&P 500 index throughout the identical interval.

SLV at the moment has an ETF Each day Information SMART Grade of C (Impartial), and is ranked #9 of 35 ETFs within the Valuable Metals ETFs class.

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