What's happening to silver's price at US$34.64 an ounce?
One reason why I have not been blogging much about silver is because there is nothing very much to say. My last blog post on silver still says very much what I would say today.
The big difference is that price is no longer above the 100dMA and has to look to the 200dMA for support. Also, in my last blog post, I said that the 50% line in the RSI has been established as a strong resistance and that price could have a harder time climbing higher. This has turned out to be true.
If we look at the price action, it has formed a series of lower highs and we want to be cautious if we are on the long side. It suggests a lack of conviction on the part of buyers. What about sellers? It would not be wrong to assume that sellers are waiting for the long term support provided by the 200dMA to break before they take action. This is currently at US$31.63 an ounce.
What's my strategy? Wait and see.
50dMA: Flattened and downturning. US$38.46 an ounce.
100dMA: Rising. US$36.63 an ounce.
200dMA: Rising. US$31.36 an ounce.
Silver: Wait and see.