Last week I wrote that silver was teetering on the edge of breaking down, in a continuing DOWNTREND. @handofzara/silver-teetering-on-the-edge
This week, silver is on the verge of breaking the DOWNTREND and starting a new UPTREND.
A DOWNTREND is defined as a series of LOWER LOWS and LOWER HIGHS whereas an UPTREND is defined as a series of HIGHER LOWS and HIGHER HIGHS.
On Monday morning, silver did in fact breakdown, as if the DOWNTREND were continuing, however very quickly BUYERS stepped up and began the recent rally to today's HIGH of $24.16 which did break the previous HIGH of $23.88.
BUT . . .
Just as soon as silver poked its head above the previous HIGH, the sellers showed up in force.
The silver market is at a price level where the past FOUR times, in the past two months, it has been reached, there was a sell off.
Is the FIFTH TIME a charm??????
I have no clue. What I can say is silver is in a tight range, punctuated by extreme volatility in both directions. In short, neither the BULLS nor the BEARS are in charge. This is the sort of market that chops folks up as it turns on a dime.
I know not what other traders may do, as for me it is hands off trading until a clear trend is defined.
source: JM Bullion
The premiums on American Silver Eagles remains steady at $6.50 per ounce.
Brother can you spare a dime??????
Peace Out and Stack On!
