Silver Had a Milestone Week
Posted: Fri Jul 24, 2020 7:21 pmWhat a week for silver!
Going over $20 sure seemed to garner a lot of attention. It blew through $21 like a nonstop train.
Keep in mind that there was solid resistance at $22.05 from 6 1/2 years ago (2/24/14). Silver went through the resistance without much resistance at all, closing at $22.24, $22.86 and $22.47 over 3 consecutive days (per Kitco). Proving it could stay at and close above significant resistance for three consecutive days is HUGE in my book. If I was a short seller, I’d be scared to death. (And I do have a lot of experience selling short, although I don’t remember ever shorting SLV)
The next real technical (when I say technical I am referring to price action as depicted on a historical chart) resistance is well above $30. I do expect potential round number resistance at $25 and $30 along the way, but will be very surprised if we don’t go at least $10/oz. higher in by March-April.
There is something delicate to deal with, however. The higher and faster silver goes, the further and faster it will fall when that first significant pullback occurs. IMHO a 10-20% pullback could come out of the blue at any time and would actually be healthy. I will buy more when that happens as the trend is still up.
Going over $20 sure seemed to garner a lot of attention. It blew through $21 like a nonstop train.
Keep in mind that there was solid resistance at $22.05 from 6 1/2 years ago (2/24/14). Silver went through the resistance without much resistance at all, closing at $22.24, $22.86 and $22.47 over 3 consecutive days (per Kitco). Proving it could stay at and close above significant resistance for three consecutive days is HUGE in my book. If I was a short seller, I’d be scared to death. (And I do have a lot of experience selling short, although I don’t remember ever shorting SLV)
The next real technical (when I say technical I am referring to price action as depicted on a historical chart) resistance is well above $30. I do expect potential round number resistance at $25 and $30 along the way, but will be very surprised if we don’t go at least $10/oz. higher in by March-April.
There is something delicate to deal with, however. The higher and faster silver goes, the further and faster it will fall when that first significant pullback occurs. IMHO a 10-20% pullback could come out of the blue at any time and would actually be healthy. I will buy more when that happens as the trend is still up.