The twenty-sixth day has been completed as we enter day twenty-seven for Friday. With the market currently trading $37.55 it is a little ways away from the fifty day moving average which is currently set at $39.32. It is not easy to tell which direction this range will break from and how long it will remain in this sideways consolidation. The longer a market trades sideways or through that of correcting through the time then the bigger the breakout or breakdown is going to be. As the days move in many longs and shorts get trapped in this market and if the market goes higher then this means that long positions will love their play to go long as well as other longs coming in as breakout signals appear as well as having shorts cover for a loss because the market breaks down. The same is true if it breaks lower that the shorts are happy with their gains and longs have to get out because its breaking down. This also can add selling pressure with people playing the trend. Currently the volume again was low as it was a hair lower than yesterdays record setting low volume once again making another two plus month low in volume on the phony shares (phony as in not real physical silver)
Shorter term the market is showing nice breakout signs. I am still not convinced as the intermediate term is looking more and more neutral every day. However, the chart shows us that the declining five day average was resistance on June sixth and then pulled back a small amount. Then the next day the on the seventh of June it got above the five average and was not able to breakout higher, however it did not breakdown either and the price has gotten above this average at the end of the day and found support at the five a few hours after the market opened today. What would be ideal for the market to keep rallying to at least $38.00 and then come back to the fibonacci level shown on the chart as support rather than resistance.