Silver was moving stronger higher off lows hit at the start of the year. This rally ran into a cluster of resistance at (1) and so far it has stopped it on a dime.
This chart is based upon monthly prices and the month is far from over.
At this time of the month, Silver so far is creating a reversal pattern (bearish wick) just below resistance at (2). With Silver still being in a down trend (lower highs and lower lows since 2011), how it reacts to falling resistance becomes critical.
We have felt a month ago this resistance cluster could be very important to Silver and we still remain feeling that way.
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