Silver Stallion Stalling
Silver is bumping up (who said technical analysis wasn't fun?) against 3! coincident resistance levels.
- Trend Channel Resistance - The red line forms the upper boundary of an intermediate term trend channel. Short term traders would sell when prices reach this level.
- Fibonacci Resistance - The recent range in silver prices (from the peak of $8.50 to the bottom of $5.45) is carved into the 38.2%, 50% and 61.8% Fibonacci levels (black lines). The $7.34 Fibonacci resistance level was briefly exceeded but it is holding.
- Gap Resistance - Gap levels often form support and resistance levels. The base of the first gap down back in mid-April was $7.48.
I am bullish on silver (and silver companies) but I would be patient. There could be a pullback to ~$6.50 given the convergence of trend channel, Fibonacci and gap resistance in the $7.34-7.50 range.