Silver rallied this week right into some long term resistance. The resistance really is better seen on the Weekly Chart.
Every time, for the past year, that silver has met this resistance, a range between $25.50 and $26.50, silver has backed off.
Will silver back off again?
Well, this is a strong resistance point, which has stopped every silver rally this past year.
So what can we say, we can say if silver breaks this resistance point, then a major move to the upside can follow.
Think about this, name one commodity that is two times cheaper today then it was ten years ago?
Well, I can think of one thing that is far less than its price in 2011 . . . SILVER! Silver is trading at half the price that it was in 2011. All this while, gold is making all time HIGHS,
Nothing makes sense, in the silver market. Silver usage is increasing, less is coming out of the ground and yet the price keeps trading at low levels.
That is my two cents on the issue for whatever it is worth.
That is about right, so take what I post with a grain of salt.
What I can say is that on the daily chart silver is in an uptrend. An uptrend is a series of HIGH HIGHS and HIGHER LOWS.
What can also be said is that silver ended the week a a longer term resistance level.
If silver, breaks out then a powerful rally will follow. If silver falls now then the resistance level will have held once again.
source: JM Bullion
The premium on American Silver Eagles nudged up a bit to over $6 per ounce.
Peace Out and Stack On!