
Dec ’19 silver breaks down below support as the precious metals pull back from their late summer highs. The lack of bullish sensitivity to many recent geo-political concerns from impeachment talks to explosive sabotage on Saudi oil production is concerning for the bulls. There is still support from fundamentals in that ETFs have continued to add to their holdings and seasonal gold purchases from India may drive gold up and support silver. From a technical perspective though, the chart damage is currently significant, and prices have fallen below what seems to be an important level. You’ll note on the weekly chart that the price level of about 17’555 seems to divide between bull and bear trends since at least 2015. While It’s possible that it may just be a bull flag before the next rally, I’d recommend a high level of caution to bulls if prices remain below that level.
