(Chart 1 - Silver 60 min zoom)
(Chart 2 - Silver 60 min)
(Chart 3 - Silver Daily)
First of all let me say this. I have been short silver for a few weeks now, trading around it a bit, but maintaining a decent core of shorts. Yesterday and last night's action has me a bit concerned. I will not puke yet, but my ears are up and I will look to head to the exits if this continues for a few more days.
35.94 was very important resistance. We are now above that and holding it, and that is what has me a bit worried.
36.33 is minor resistance, but I fear that will not hold.
Should it break, we will run into a major resistance cluster, that must hold for me to stay short.
Look at the 60 min chart.
At roughly 36.50, we have a very strong MML resistance @ 36.53, as well as the bottom of the old bullish channel (light blue). We also have the 62% retrace of the most recent selloff (6/10-14) @ 36.55.
I will add up here.
Here is the problem... I would like to get rid of the entire position if silver trades back into that blue channel, or closes over 36.55. However, look at the daily chart. The down channel (magenta) is the overall governor of current price action. Today's high would be just north of 37 to penetrate it. Therefore, I will keep a loose stop on silver, and use this channel to make my puking decisions.
Hang in there, 1 margin hike or dollar rally is all it takes sometimes.