MARKET CLOSE UPDATE - Price action heading lower as the more longer term trends (the next level after intermediate) are starting to now head between neutral and in some cases bearish. The more long term trend is still in amazing uptrend and the reasons for the dollar collapsing remain the same. You can believe the hype that economic conspiracy nuts talk about with how debt is guaranteed and its effects on society or you can believe the hype that budget deficit will get under control from the other guys. Or you can connect the dots yourself and decide if the dollar is strengthening and if the value of silver is going lower? I am as confident (if not more) of silver breaking $100 into early 2012 and even still this fall because in order to make gains of over 200% in a year you need to have some trigger to do it and the corrective crash is one of them.
As far as this daily chart is concerned, the resistance met today was at the 50 day moving average and now that it is breaking from it make this trend go from neutral to bearish using the 50 as the indicator. That is the next level after the intermediate term frame (which I like the use the 5 day). This is also the second test of the fibonacci support level as well as the VWAP (line in the chart) and the 100 day average (not shown in this chart) and the more often support is tested then the more likely it will be taken out. Call me a conspiracy theorist if you like, but this move might be from TPTB getting all the silver they can at the cheapest prices possible and because they can time the market (because they manipulate it) they can buy what they can at these lower prices. It is a paper driven market and I am personally buying silver because I think silver is going to crash as is the stock market. Not by nominal terms, but by the exchange itself. I can't give a timeline other than soon and when I define soon it would be this decade and most likely much sooner than later.
Resistance at the five day moving average and the very powerful fiboancci level of $39 was hit and the market has now come back to the 61.8% down target. if this $35.00 level gives in then it seems as if its trouble from here. However, with a bottom here this means that $39 will have a better chance of being resistance. Video scheduled to be uploaded in less than an hour from this post (1855GMT).