Near Term (Basis May):  Neutral, weakening

Thursday’s lower reaction to this week’s setback has now created enough technical damage to drive us off our near-term bullish outlook for the safety of a neutral stance…looking lower. The end of the week’s trading will flirt with an additional damaging chart feature…a move down through the 40-day moving average to where we consider this to be an outright trend change this week from bullish to bearish. This would put a sizable amount of recent new long accumulation on the part of the large spec trader group at risk of moving into a liquidation phase to add increased selling pressure on the market. We have highlighted a momentum divergence on the daily chart where the recent trading to a new piece high was not confirmed with a new momentum high and this is a signal that all is not quite well for the chart readers. 

Long Term: Bullish

Our long-term technical outlook is bullish. Major resistance is at $19.005, while support is $16.635 and then $15.700.2017-04-20 16_40_06-042017_SF_Daily_Commentary_Silver [Read-Only] - Microsoft Word2017-04-20 16_40_01-042017_SF_Daily_Commentary_Silver [Read-Only] - Microsoft Word

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