Below is a 4-hour chart of silver (updated from the 3-hour interval I showed Monday).
Unfortunately, silver broke down from the arc. However, it should not have been a surprise to regular readers that further selling has ensued. I also cautioned Monday that the probability would be such should a breakdown occur. The silver lining is that the price now sits in the $23.80 zone, a level that has served as support/resistance. This level is likely to offer a springboard for a short-term bounce if it can hold up and if gold co-operates.
Thus far, gold is holding the $2000 spot level and channel I showed Monday; the daily gold chart is updated below with two more trendlines I believe may act as support should gold lose $1990.
As I have written many times – only fortune tellers pretend to divine the future, and the best market participants can do is try to define probability. Nimble traders may have an opportunity to capitalize on a short-term swing using the levels I have presented above as a guide to determine risk/reward. Stackers and positional holders could zoom out and look at the move that started from $1650 for a perspective on when their next buying opportunity is best.
Have a great weekend.
P.S. Although the irony of one infamous banking CEO eluding to what he seems to think would be a righteous ban on short-selling the banks while engaging in naked shorting PM futures is not lost on me – I will continue to opine on price action as it exists within current market conditions regardless of how subjectively “fair” those conditions may seem.
