Back in March I noted the massive Silver breakout setup. It was a beauty. We’re finally reaching a major price target, the 200 week moving average.
Sunday night, Silver futures hit 21 before sharply reversing to 20. This is right where we’d expect heavy selling. As a position sized swing trader, this is where I get off. That doesn’t mean this is a long term top. It’s just a solid area to lock in gains.
Longer term holders should be pretty content and pleased as Silver has just broken it’s downtrend from 2011.
All things considered, the base case is Silver consolidates in this new range of 18-21 in the coming weeks.
Keep your eye out for any push back closer towards the 10 week moving average, this is still one of the most attractive assets in the market.
Trade ’em well.