Silver consolidation between support and resistance
What is happening with Silver? We are seeing the MONTHLY November bounce off the support 21-22 zone. Does this mean that the Silver will go for 30 again? Should you be building the buying position…If we look at the monthly chart we can see a huge reversal month happening in November but so far this is just a consolidation pullback, and we need to see a break above 26.100 to call this an uptrend extension. This situation is reflected also in the chart of ETF Silver holding.
The only thing that we can’t rule out is a violent price action around 26.100 is not excluded and this is exactly the strong resistance for an extreme upside continuation. At the moment a break and confirmation above 26.100 will be a clear indicator that the upside extension is valid and dominant. We can see that clearly on the weekly chart below. Rejection in that zone or here could lead to a downside reversal and a retest of the important 23 resistance.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
