Update on Silver: Apr 3, 2016

Originally posted privately for a retainer client:  Apr 3, 2016

Silver looks pretty dicey as a short to me.  Here’s my take.  There are two possible major channels that are quite bearish using log scale…2016-04-03 SI wkly 1700…and a nice, supportive TL using arithmetic scale.2016-04-03 SI wkly 1701Either way you look at it, SI has tested and reversed off its white .786 at 13.817.  It hasn’t broken out of the falling purple channel yet…2016-04-03 SI daily 1701…but, it’s working on a rising white channel that’s aiming at a breakout…2016-04-03 SI daily ECU 1701 …and, has tested and bounced off its SMA200 at the bottom of that channel.  Even if the white channel and SMA200 broke down, you’ve got support at 14.623 – only 2 1/2% below current levels.  Not worth the aggravation.2016-04-03 SI daily CU 1701

This is not a great setup for a short, and I wouldn’t advise pursuing one at this time.

Bottom line, there are much more interesting setups to pursue, such as if/when USDJPY or CL reverses higher the next time in order to save the day.



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