Silver runs right into a Resistance Zone and then halts

Just as if on clue, Silver bulls came out of the gate bucking high and hard but were unable to throw the bears who have dug in at the exact spot on the chart which says they should.

Take a look at this chart which I posted last week and which is still applicable after today’s trading session. Notice how silver shot up throw that “formidable resistance zone” near $32.50 but then faded to close almost right on the line instead of solidly above it.

Still, the bears dodged that bullet only by the slimmest of margins as the market put in a strong close to end the session, although it has retreated a bit this afternoon.

Tomorrow’s session is now set up to be an important near term juncture for this market. If the bulls can take out today’s high and hold the market above $32.50, this thing has a real shot at making a quick run at $35. If they hesistate here, we could see it set back about $1.00 or so to see if it can uncover some good quality dip buying.

Support should also emerge down near $30.95.

Author: Trader Dan, specialized in trading commodities

 

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