How Low Is Silver Headed?
New York (Nov 9) Silver futures were down $.35 at 21.31 now retesting the lower end of the trading range with major support at 20.50 in my opinion & it looks like prices might retest that price next week. I still remain bullish silver in the long run and I do believe you should take advantage of sharp declines in silver prices because eventually this market will turn around down the road but at this time prices look vulnerable to the downside. The U.S dollar was sharply higher again today and that's been putting pressure on silver and gold, however I think any rally in the dollar will be short lived as the real story today was money flowing back into the stock market & out of precious metals as the trend in stocks is higher and the trend in the precious metals at this time is lower. If silver prices break 20.50 you would have to think that a possible retest summer lows of around $19 could be hit in and if silver gets to those price levels I would be recommending a buy because I think silver still remains cheap but could get cheaper the short term. TREND: LOWER -CHART STRUCTURE: EXCELLENT
(Courtesy of Michael Seery)