Silver Price Losing its Grip of the Recent Uptrend

By: Joseph_Russo

Though still rising (for now) amid higher-highs and higher-lows, Silver is beginning to show signs of losing its grip on the uptrend established from its December low.

After peaking at $18.50 upon brief encounter with a well-established bearish and declining 200-day average, the dollar-price of silver today is breaching its short-term uptrend line.

Silver must maintain trade above the recent 16.74 pivot low in order to maintain its grip on the uptrend. Failure to do so sets the next support level decidedly at 15.51.

Though rather impressive, the recent 30% move up from its trough at 14.10 to the peak of 18.50 exhibits clearly corrective and overlapping trading structures, which conveys a lack of motive and conviction – suggesting that the December low may be retested or breached in the weeks or months ahead.
To close on a bullish note, poor structure, motive, and conviction aside, so long as the 15.51 level holds pivot low, another rally that is able to vault price action above the rising green trendline so arrowed, could set off a bullish buy-trigger that can carry the dollar-price of silver well above the 21.00 handle.

Until Next Time,

Trade Better/Invest Smarter

By Joseph Russo
Chief Publisher and Technical Analyst
Elliott Wave Technology
Email Author

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Joseph Russo, presently the Publisher and Chief Market analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program.

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