Bill Downey: Silver did make a test of the medium term moving averages as we anticipated but failed at the 23.09 area and turned back down and thus the medium term trend remains bearish. The moving averages for the medium term are now 22.72-24.10 and that remains the resistance area needed to overcome to neutralize the downtrend.
Shorter term Resistance remains at 23.00-23.50. IF we can get above that then 24.10 and 25.12 are the last two resistance points until the 27-28 area. The medium term trend is still down, and we have completed two tests of the medium term moving averages. Both so far have been unsuccessful.
The key for silver is that it’s at a major crossroad of three channel lines (long term ones) and now the moving averages are at these channel lines and so is price. A weekly close below 20.50 would suggest to us that there is still downside potential. The bottom line is that while we are within these three channel lines of congestion, the outlook and next move of importance remains elusive. Even a weekly close below 21.35 puts the uptrend potential in question.
A close above 23.50 – 24.10 would tilt things back to the upside. Until then, we’re really in neutral territory.