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. If the short term cycles play out, then favor lower into mid November. We just may continue to trade within these three channel lines for a few more weeks. Finally, from a medium term perspective, we’ve had two tests of the moving averages and so far have failed. For the moment then, the medium term trend remains down and it still takes a close above 23.50-24.10 to question the medium term downtrend. Until then we can’t rule out the downside.
This article is brought to you courtesy of Bill Downey from Gold Trends.net