The price action has been very interesting over the past few days on silver. The resistance of the 5 week downtrend has again capped the gains and the sellers look ready to resume control. A bearish outside day yesterday has re-affirmed the downtrend and also seems to suggest that momentum indicators are still in fairly negative configuration. However the bears have not got it all their own way as the overnight low has been posted right at the $16.04 support from which the price has bounced sharply. The next price action is important as a lower high under yesterday’s reaction high at $16.78 would suggest that the snap rally is just a kneejerk reaction to be sold into. Already the intraday hourly chart is showing the rebound stalling under a historic pivot level at $16.60, which coincides with the resistance of the 5 week downtrend. This looks to be a chance to sell. A confirmed move above $16.88 would suggest a potential reversal.
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