This week silver has traded in a rather tight range although with a great deal of volatility.
Overall, silver remains in a DOWNTREND on the daily chart. A downtrend being defined as a series of LOWER HIGHS and LOWER LOWS.
For the past two reports, and now for a third report, I have discussed the possibility of silver reversing the DOWNTREND.
Silver can reverse the DOWNTREND by establishing a "HIGHER LOW" at this level and then rally to take out the prior high around $23.90. If silver breaks down below the $22.50 level then expect a continuation of the DOWNTREND with a LOWER LOW somewhere below $20.85 per ounce.
Since silver is in a downtrend then odds favor another leg down however the possibility of a reversal is there.
source: JM Bullion
The premiums on American Silver Eagles remains steady at around $6.50 per ounce.
Peace out and stack on!
