Attached to this article you will see that I have included the monthly chart for the spot silver market, which typically would be the weekly. However, I wanted to point out the monthly chart simply because it is at such an important level historically. We look at this chart, it is obvious that the $19 level is very significant. In fact, we have completely retested the point of the massive breakout during 2010. We have been banging on the door of $19, and there is obviously a massive amount of support in this general vicinity.
Also included on this chart is the descending triangle that we are trying to form. If we do break down, there is the possibility that we drop $6, meaning that we would target the $13 level. If that does in fact happen, we would retest the range that the market was in from roughly 2006-2008.
At a major crossroads.
The real question then probably is going to be about the US dollar. All things being equal though, I have 2 possible scenarios in which I will be playing the sewer market. The first one includes me buying silver in this general vicinity, and holding onto the trade until at least the $26 level. Quite frankly, I would not be surprised at all for this to be an excellent place to start buying silver for a retirement account, because of this market most certainly will continue to go higher over the longer term.
However, there is the possibility of silver dropping down to be $13 level, if that does in fact happen, I would not only be a buyer there, but I would be buying as much silver as I can get my hands on. With that being the case, I think that June is going to be a month that I am more than willing to start buying silver on signs of support. Will it do much during the month? I don’t necessarily think so, but I believe that the so-called “smart money” might be starting to build up their positions now. This is a longer-term call, so those of you that are looking for the right type of action in the next couple of weeks will more than likely be disappointed, but for those of you that are looking to build a portfolio, this could be one of the best times to be involved.
