This is the first ever side by side intra day chart for silver priced in both dollars and gold. Wow, they look the same and they both took a pounding. This does not kill the trend by any means and if you are by the books of "Past resistance becoming support" then a test of $31.40 is most welcomed. Moves like this are common in major bull markets when you get moves of this kind of magnitude. Thats why if support goes all the way to $22 then the explosion should be greater to the upside. I don't want to talk about $22 as of yet, but the current support level is $31.40 area and that would be massive. This big upside fibonacci target has not had a confirmation breakout it's easier to confirm these moves with any kind of correction in comparison to having big explosive gains.
The daily chart shows a decent size retracement. From the 26.30 lows the following are key linear fibonacci levels
38.2% = $31.26
61.8% = $29.37
This means the market remains bullish (but barely) on the intermediate term. Below $29.37 puts this market into a bearish and making the $8 rally a failure. Lets not jump the gun on that as it is "a what if" statement. What is now is the $31.26 matching up with the $31.40 area from the upside.
It has fallen through the five day moving average putting this market to a neutral setting. This is the first test of the ten day moving average since this rally begun over a span of almost one month. This is strong as it says that it has not corrected that much in price or through time (until now).
It might be extreme to put this chart in with Silver priced in AU/mg, however I have to prepare and/or find a way to chart silver for the post dollar days. Plus, people like the gold to silver ratio. Well, this is the ratio chart (reversed) as well as a silver to gold ratio chart. The trend for this is very similar compared to the dollar one.
Video below is one of the average gasoline prices priced in dollars and silver.