This chart is showing how resilient silver has been during this intermediate term bull market. The five day moving average was again successfully tested today and it continues to trade in a steep upwards trading range. Currently as of 7:30pm EST the silver market is at $21.77 which was the level that was support yesterday and has been resistance today. This could mean that the correction is about to happen, but the buyers or bulls are not giving up so easily. The key levels of support are $21.00 and $20.37 which was mentioned in my recent VLOG
This means that we are still three percent of a down move away from testing this 23.6%. The fibonacci level before 23.6 can be calucated by taking 23.6 and multiplying it by 61.8%. This brings us 14.6% and this level is at $21.36. This has not been tested of as yet because the bottom on todays sell off was $21.60. Therefore if we take 61.8% of 14.6 that gives us 9% and that level is $21.60. Therefore we have retraced 9% of the rally thus far which is pocket change. During this rally we have seen many corrections be that of a couple days of correcting through time or the odd two percent pull back.
The Monthly chart is not over extended. It shows a clear breakout from its previous resistance below $20 and that it has surpassed the 2008 highs. Therefore a move to the $24 or even the $26 and $28 area would not be a shocker when looking at this monthly chart. The move in 2006 gave us many big months where silver was exploding to the upside. When we mix the fundamentals of the dollar being backed by nothing and all this excessive money printing aka quantitative easing with the factor of the price manipulation to the downside that has been done with silver the big move is not a surprise.