Hammer Alert: Silver At Risk Of losing $16 As Cartel Is Determined To Force The Break-Down

Silver is fighting to remain above $16, but there's two reasons the whole number support might not hold. Here's the details...

Update: Silver just lost $16:

We really want to stay above the December 11, 2017 closing price of $15.72.

Support zones are around $15.92 and $15.75.

Silver just went on it's summer sale.

See the Monday SD Outlook and Wednesday SD Midweek for fundamental arguments on why we may not see a rally for a couple more weeks.

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Over the last several days, we can see the metals being worked lower:

Yesterday, late afternoon, silver nearly lost the 16-handle.

Today, it seems the pressure is one once again in the pre-market.

There's two things on silver's chart that are indicating we could be with a 15-handle in a hurry:

First, which I didn't mark on the chart, is the low trading volume.

With low trading volume, the cartel is really able to strong arm the market.

Second, which I did mark on the chart, is the RSI, which is indicating silver has room to run to the downside before screaming "oversold".

Just like the cartel was determined to get the death cross on the gold daily chart, I appears now the cartel will use these two weaknesses in silver right now to to force a break-down below $16.

We'll see.

Here's that death cross on the gold chart:

And here's why silver has room to run, when compared with gold:

Gold's RSI is in the 22s and an extreme level of oversold. In fact, gold has not been this oversold since December of 2016.

Silver, on the other hand, has an RSI reading in the 37s.

See what I mean about technicals matter?

Sure, we know it's a manipulated market.

As in the cartel, being the ESF, the Fed, and their agents, suppress the prices of gold & silver.

But ways they can do that is with painting the chart to give off certain indicators that traders, investors, and mostly the programmed high frequency trading algorithms feed off of to make their (selling) decisions.

The dollar and crude are both moving up right now:

One of them will likely break down.

We'll see.

We get 3rd estimate for 1st quarter GDP in a few minutes, and Fed Head Bullard has a speech with Q&A session at 10:45 a.m. EST.

Translation: Don't be surprised if silver loses $16 today.

So far the cartel has been unable to break-down silver below the sideways channel of pure agony.

And by all looks of it, they're determined to force it now.

Stack accordingly...

- Half Dollar

About the Author U.S. Army Iraq War Combat Veteran Paul "Half Dollar" Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart. Paul's free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul's Twitter is @Paul_Eberhart.

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