Silver has broken above and established above the 25 line so that line is now proposed support near 22.78. The inverse head and shoulders objective is 24.87, which is also the September high. 23.97 is pullback resistance. From a bigger picture perspective, SLV made a weekly volume reversal at the low 2 weeks ago (see below). Finally, silver has turned up from a 8 month channel and the bottom year+ range and sentiment is downright brutal as evidenced by articles such as EXCLUSIVE Banks prepare to scrap LME gold and silver contracts, sources say
SLV has also run into 2021 VWAP. A pullback ‘makes sense’ with support near 23.60. The equivalent level for spot is 25.62. A big reason to hold a constructive longer term view on silver is the fact that VWAP from the March 2020 low has provided support on multiple occasions.
DXY tanked on Friday but price continues to trade within the short term bullish fork. Price ended Friday right at the 25 line so an early week bounce is possible. 91.30 is possible resistance now. Ultimately, proposed support is 90.50.
Silver has been trading within a downward sloping channel since the August high. The 11/30 low was right at VWAP from the March low (see SLV chart below), so bullish risk is against Monday’s low. Near term, watch for resistance near 25.07/56. Eventually, focus will be on identifying a higher low against Monday’s low.
Silver has been trending lower since August 6th and put in a large bearish outside day on Monday. Focus is towards the lower channel line near 20.65, which is currently just above the 200 day average. Resistance should be about 24.56 (see 4 hour chart below). A downside bias is reinforced by the fact that VWAP from the high was resistance on SLV on Monday (see 2 charts down).
USDOLLAR (EUR, GBP, AUD, and JPY) is testing a major level (daily chart is below). Price reacted today at the top side of the center line of the Schiff fork from the March high and the top side of the line off of the March and May highs. This is a great spot for a bounce. Pay attention to the upper parallel and former support at 12253. A break above there would indicate an important behavior change.