Silver $35 holding pattern

Silver continues its range-bound trading, closing once again near the $35 mark. Sideways trading in the past week is healthy for the silver bull market, after its over-heated rise and rapid fall back to the $30s. Every day that goes by at this level, the bigger the base forming at these price levels. The 200 day moving average for silver is still around $28, but it is creeping closer to current prices every day. A drop below this average would be bearish for silver, but we continue to find support around $33.60 each time this low has been tested, which is bullish for the white metal.

Silver Chart $35 5/22/2011
Funnel-shaped trading pattern for silver

 

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