Silver Update

I wanted to put this up first because as I mentioned on my posts Tuesday that Silver had bottomed, on that day it was down, but up from the late night and morning raids and subsequent raids during the comex session but Silver failed to make lower lows. The HUI had bottomed on Monday. Note the rising RSI and positive, and MACD beginning to turn up. Remember historically the HUI leads the way.

Silver is forming a base right now, a level of support from 32-33 has been carved out and if there are no further margin hikes out of the comex we should trade between 39.5 and 34, and there will be less volatility so one could swing trade the range. The summer isn't very good for metals as Europe goes on vacation and its really hot in Asia and usually picks up by fall as they prepare for wedding season.

You also must remember the speculators that got their A$$ handed to them in the beginning of may, they will be selling and adding pressure (resistance) as they try to cut losses or break even. And a break of the trend line over 35.5 will encourage a move to 39. Right now we are sitting at 35.64, so there will be some short covering today.

35.5 is weak support, big time support 32-33. Major wall of worry to climb for metals, all this talk of bubble bursting, end of QE and dollar strength. All the talk will amount to NOTHING! And Silver will take out the recent highs by this fall.