It was momentarily encouraging to see silver rally to slightly above 23.00 as the Fed keeps stimulus in place. However, it didn't stay up there for long and drifted right back to the 50dma around the 22.50 level. Perhaps flirting with the down trend line drawn in red gave the hedge funds another opportunity to short the silver market. The MACD is also rounding down so this current technical posture does not look good for the bulls. I'd like to see the red down trend line broken to the upside so that we can have some renewed buying interest and a chance at touching the 200dma at around the 24.00 level.
All eyes are on FOMC meeting scheduled on September 17-18 due to Fed's decision on Tapering. Technically, on the charts, we seem to be at an important juncture also. I would like to see the 1300 level hold next week and preferably move up to 1350 and above so as to give a sigh of relief.
