Silver, SLV’s at a juncture where it can either go sharply higher or continue lower from here

Punching through support puts SLV at the danger point.

Whenever price action penetrates support and hesitates, it’s in Wyckoff spring position; poised to move higher.

Because we’ve got a weekly MACD bearish divergence in addition to a huge volume ‘changing of hands’ on February 1st, probability would favor downside action … continuing on to 17.50 – 18.00 area.

Nonetheless, SLV could rally from here … even in the midst of a longer term bearish (deflationary) environment.

The precious metals sector is a crowded trade and one to be avoided (not advice, not a recommendation).

An interesting post on the current inflation/deflation scenario is here.

Charts by StockCharts

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