Silver on the Cusp

Silver ($SI_F, $SLV) is at a critical juncture on many technical levels as illustrated in the monthly chart below. First if you take away all of the lines you can see a bull flag that if the recent reversal holds would take it higher to 69 on a Measured Move. The volume pattern fits this thesis. It is also sitting on support of the rising Simple Moving Averages (SMA). Next the Relative Strength Index (RSI) is trying to hold the mid line after falling from a technically overbought level. If it holds the mid line the bull flag thesis is reinforced, if not then a move lower below 40 would favor the downside. Third the Moving Average Convergence Divergence (MACD) indicator has been moving towards a

bearish cross negative, but now looks like it may glance off instead of crossing. A glance aids the upside case. The Bollinger bands are tightening constricting upside movement. Finally the price is attempting to hold over the Bullish (blue) Andrews Pitchfork Median Line. A hold will keep the upside case in tact but a move below it would likely draw it towards the Bearish (orange) Median Line much lower. What is it going to be? As we enter November the first day looks to print back lower, but there are 30 days in November. Be prepared for Silver to move either way.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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