Silver Losing its Grip on the Recent Uptrend
by Joe Russo, Elliott Wave Technology Though still rising (for now) amid higher-highs and higher-lows, Silver is beginning to show signs of losing its grip on the uptrend established from its December low. After peaking at $18.50 upon brief encounter with a well-established bearish and declining 200-day average, the dollar-price of silver today is breaching its short-term uptrend line. Silver must maintain trade above the recent 16.74 pivot low in order to maintain its grip on the uptrend. Failure to do so sets the next support level decidedly at 15.51. Though rather impressive, the recent 30% move up from its trough at 14.10 to the peak of 18.50 exhibits clearly corrective and overlapping trading structures, which conveys a lack of motive and conviction – suggesting that the December low may be retested or breached in the weeks or months ahead. To close on a bullish note, poor structure, motive, and conviction aside, so long as the 15.51 level holds pivot low, another rally that is able to vault price action above the rising green trendline so arrowed, could set off a bullish buy-trigger that can carry the dollar-price of silver well above the 21.00 handle.