Test 200 day MA on corrective move lower
Silver is making a run to the downside and in the process is down testing the 200 day MA at $17.997. The low today has reached $17.979 so far.
The price traded above and below the MA from Feb 10th to Feb 22nd. On Feb 23rd, the price moved away from the key 200 day MA, and broke a topside trend line in the process AND the 50% of the move down from the July 2016 high (at 18.3867). The high extended to around $18.50 this week before the fall back down today.
The retest of the 200 day MA is key. Hold and the buyers may return. Move below and more traders may look to exit longs/put on new shorts. The $17.73 is the next target. The 100 and 50 day MAs area near each other at the $17.20 area. Those would be the next downside targets from the daily chart.
Over in gold today, the price is down -$12.40 or -0.99% to $1237. Gold peaked right near the 200 day MA earlier this week (at 1262.14) and found willing sellers. The 100 day MA for the yellow metal is at 1212.97. That is a downside target if the bears remain in control.
