I am posting the Weekly Chart, since I usually post once a week and the weekly chart shows the trend somewhat better.
Although it may not feel like it the Weekly Trend in Silver is up. An uptrend is defined as a series of HIGHER HIGHS and HIGHER LOWS.
Two weeks ago I posted :
"In an absolute perfect world silver would drop farther down to around $23.00-$23.25 range on a daily chart to fill the prior "gap" and then bounce back for another leg up." Sideways Action - No More
Well that is where silver is trading right now.
Does this mean that the "pullback" is over?
I have no clue the market will tell us if this is the end of the pullback. What I can say is silver is currently at a place of decisions. Does the market want to build a base for another leg up or is more of a pullback necessary?
Warning if you are trading this is the area where most traders get ground to bits. I am staying clear and waiting for a better setup.
The UPTREND in silver is not in any jeopardy of changing unless the price of silver drops below $19.83 in which case on a weekly basis silver drops into NEUTRAL.
Of note is we are heading into the Summer Doldrums which usually means that silver and gold tend to slide downward. Nothing is set in stone, but these are headwinds facing silver these days.
Of course given the state of affairs in the good Old US of A, anything is possible.
I mean it is not as if our Treasury is empty, our armories are empty, our borders are wide open, and banks are failing. I mean if any of that was going on I would say it is time to head for the hills!
source: JM Bullion
The premium on American Silver Eagles continues to come down and stands at roughly $18 per ounce.
Peace out and Stack On!