Amended Silver Support Levels
I've been saying since yesterday that $34 was vital support for silver. It still is. However, I thought it was important to look a bit closer at the charts and here's what I found.
Yes, $34 is important. It is diagonal support from the lows of September. That line held very well yesterday and overnight until finally being overrun by the Central Bank and/or Cartel-inspired smashdown in gold this morning. There's still time for silver to recover and close back above $34 today. That would be great. However, if it doesn't all is not lost, at least not yet.
On the charts below, you can clearly see the significance of $33 as support. The area between 33 and 33.50 is very important horizontal support. Note that $33 held very well as a stopping point in May and it provided stout resistance on the way back up from the lows in September. It is now critically important that $33 hold as support again. Breaking the diagonal trendline at $34 can be overcome. Losing horizontal support at $33 would be a very bad sign. IF silver falls below 33, it will likely drop to at least 32 and if it falls below 32, it will likely test 30.
If trading (which I'm not), be diligent and cautious. If looking to buy/add, watch the area between 33 and 33.50 very closely because IF silver reverses off of there, it could present an attractive buying opportunity. If it falls below 33, I'd exit short-term positions and look to get back in later.
I'm not worried about gold, at present. As long as it stays above 1750, all is well. In fact, as long as it stays above 1705, there is nothing to be overly concerned about.
Lastly, I posted this latest from Gonzalo Lira in the update to the previous thread. If you haven't read it yet, I strongly suggest you do so now.
Hang in there. TF