Silver has had a fantastic run so far this year and has of late settled into some sideways action.
Two weeks ago I posted that silver was bullish BUT to expect some sideways action or even a pullback.
Weekly Chart of Silver is Bullish BUT . . .
So far there have been no surprises, and silver has retested the "break out" level ($24.70-$24.80) three times and always seems to bounce back above $25.00 per ounce.
Today, silver once again tested the "break out" level with a LOW of $24.75 before bouncing back to CLOSE once again above $25.00 per ounce.
On the Weekly Chart, silver ran into resistance and has begun to back off. Silver remains in an UPTREND on the Weekly charts. An UPTREND is defined as a series of HIGHER HIGHS and HIGHER LOWS. Silver would have to break down below $18.83 per ounce to negate the current uptrend.
Next week the Federal Reserve meets so expect some fireworks. If the FED does not raise interest rates then expect an upside action as the Federal Reserve Note (aka the US Dollar) gets hammered. If the FED does raise rates then silver could experience some more downside action.
At least that is the way it is supposed to work. In addition, the precious metals markets will be entering into some seasonal headwinds at the end of next month.
Exciting Times!
source: JM Bullion
The premiums on American Silver Eagles remains very high around $20 per ounce.
Peace Out and Stack On!
