Silver Update May-3-2017

May 3, 2017Twas a sad day for silver traders today. The 16.60 resistance line was breached and the 20-day moving average has just crossed below the 200-day moving average. The next point of resistance is at 16.13. If that does not hold, then the mid $15 range is in play. The large CCI divergence tells us that a turnaround will come, but it seems we will have to wait until next week at least for that to happen. RSI has not be at these levels since 2014, but a sub-20 RSI is not unprecedented. Polls for the French election are not helping silver gain any traction and it is unlikely that a LePen win will take place. With a greater than 50% chance of a rate hike in June, we may have to wait for seasonal strength in June/July in order to break out of this bearish trend. Trade responsibly.