After being clearly overbought and popping outside of the weekly upper Bollinger Band, silver has now quickly made its way back to the middle band–That being the 20 period weekly moving average. What now? I think any longs should have a stop-loss in below the 20 period weekly, roughly below $33.80. Beyond that, if the middle band cannot hold, then a test of the lower BB cannot be ruled out.
However, I am still looking for a multi-week or even multi-month consolidation in silver after this initial leg down. Overall, silver remains in a powerful bull cycle, and I would be out of line calling “the” top here. Forecasting what will happen a year from now is not what I do, nor what I need to do. Instead, I am simply focused on analyzing the next directional move, if any, several weeks or a few months out.Twitter