Silver Pivot Point (Short Term)

Silver is at a pivotal moment right now. A lot of people are on the edge of their seats watching it. As I showed the other day, though the monthly chart is bullish for silver, the weekly chart is bearish because silver hasn't retraced to significant support or fibs.

On a daily level, silver has retraced to its 50% fib and is sitting on a support line. If silver breaks through this, it will now have overhead resistance that it can use to make lower lows. If however, it bounces hard off this level today/monday, I will feel more confident about the price action.

If price drops through this level, it might get support of the lower fib retracement, but more likely, I'd expect a drop down to 18 or lower. Here is a look at a bearish setup for silver.

One fib line shows that the recent spike higher in silver was stopped by the 62% fib retracement level. The other fib line shows the extension low of this move. ie: if silver drops, it will go to at least 17.5 before hitting it's fib extension.

This is right in line with the chart I posted the other day of the entire bull move in silver. Its 50% retracement is around the 17.5 level. Here is the chart I posted before.

I'm afraid metals still need a good stop-run / shakeout before another big move up. If silver drops this low, be ready to pull the trigger if you are still fundamentally bullish on the metal. If you are unsure, just get out of the market.

Have Fun. Good Luck. Play Safe.

-JT

(PS. It's worth noting today that the VIX has spiked 25% despite no significant movement in any other index.)