Is silver ready for a trading range after a virtually straight up 5 week advance? Silver has rallied from $12 to $16 since late April, and looks like it could be ready to possibly make a base up here with $14.50 as the low and $16.50 as the high. June 3rd saw silver experience its worst day since April, dropping from an overnight Asian market high of $16.20 to $15.30 towards the end of the NY trading session hours later.
The sharp uptrend is in tact if silver holds above the $15.20 area in the next few days, and then continues an advance back towards $16, otherwise, it might be headed for a perfectly healthy basing session as it braces for its eventual march to the Mar 08 highs above $20…we think…and hope. Watch it closely these next few days for more clues.
Silver Chart, Daily, 6 Months