Price moves in Silver in recent sessions since the late May top of 32.750 have been elusive to say the least. We were in a defined up channel which broke down in mid-July only to rechannelize after falling through the trend and finding nebulous support at 26.495. We posted an article last week comparing the open interest in Gold to that of Silver and the chance that we peak into the end of August and then enter a profit-taking phase heading into the monthly jobs data. We saw price range from 29.55 down to 28.010 a handsome move lower setting up likely for some buying interest into the remainder of the month.

Download the daily chart for Dec Silver here: https://tradeguidance.com/newsletters/silver-daily-sep-24/

The hourly chart after the big down move past the jobs data on Friday saw us dropping just before the regular trading hours from 29.470 making a low of 28.010 which now places resistance between about 28.910 and 29.160. You can download the hourly chart on here: https://tradeguidance.com/newsletters/silver-hourly-09-06-24/. By the way, we tend to post our charts as links so as to keep the article less lengthy allowing you to scroll through it on your mobile device.

So as a short-term market participant, should you expect further consolidation in Silver heading into CPI/PPI and UoM's Preliminary Consumer Sentiment numbers for the upcoming week? It is entirely possible but if we continued lower that longer term support we mentioned in our article last week of 27.830 could be breached and once the market gives up that support level, there is not much more opportunity for the short term participant for long trades. 

However, we believe that the opportunity to move higher given that Gold found recent support is higher. Therefore trading into that resistance band and beginning in earnest, to find some sellers initially at a higher level or the Fibonacci halfback at 28.740 is more likely. Note that the low we made on Friday is not to far below the earlier low made last week at 28.050, so in effect a short-term double-bottom. Also refer to the support area we drew your attention to in the post from last week at 27.830 and therefore holding that price, could see us testing higher into the upcoming week and into the middle of next week with the Fed rate decision.