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The end of day chart still holds an uptrend on the $YI_F and $SI_F charts of silver. The uptrend – while correcting dramatically lower – is still intact for now. I will not be surprised to see another push lower in this market and I’ll be watching the 40.00 level closely as this is not only a major psychological level but the area that the 34 period EMA low is near on the daily chart of the the SI_F contract.
The current move however has reached the 20 period SMA and 34 period EMA high – which is my sweet spot for a swing buy. The daily chart – because of the uptrend – is still a valid environment for a trend follow but I realize this is nothing like buying into the period retracement into the 34EMA Wave back between March 15 and 18.
The increased volatility is looking to be ushering into distribution but does not invalidate a long position as prices are retreating from selling pressure just in front of 50.00. The key here is not necessarily the ceiling overhead but the where the bulls are willing and able to provide buying support.
The uptrend on the 240-minute chart of silver is pulling back to the support between 40.20 and 40.00.
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