Silver is coming close to hitting a major long term support line, and is currently in a channel that last time hit the trend line subsequently rallied. Together with a head and shoulders bottom, get ready for a breakout if Silver gets above the 17.50 resistance level. Its currently trading below its 5, 20, 50, 100, and 200 day moving averages and near its lows for the day, so don’t step in front of it quite yet. But look for an entry just above the long term support of $16.00.
For May silver, we see near term resistance at $16.545 with longer term resistance at $16.667. With near term support at $16.335, and showing longer term support at $16.247.
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Bullion on Bullion.
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Michael Bullion, CAIA
Senior Technical Analyst
Walsh Trading, Inc.
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