Silver Bombs on US Government Shutdown

October 1, 2013

NEW YORK (Oct 1)  December silver futures hit a seven-week low Tuesday. Bears have the overall near-term technical advantage and gained fresh downside momentum Tuesday. A five-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $22.175 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $20.00. First resistance is seen at $21.225 and then at $21.50. Next support is seen at the overnight low of $20.685 and then at $20.50.

By 9:15 am EST spot silver had already fallen 4.0% to $20.90 on heavy volume.

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