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SLV is “kissing the underside of resistance” at (1) in the chart above. This is a fairly important test for SLV. It appears SLV broke support and is now testing support as resistance. Sizable declines in any asset often take place when they can’t get back above an old support line.
Kiss Silver good-bye? Too soon to tell for sure!!! These patterns do suggest SLV is vulnerable and could pick up downside speed!
Below is the reason I suggested to be long silver over gold, until Silver hit $49…now this chart suggests Silver is still a little long in the tooth on a relative strength basis.
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As you can see, despite the decline in Silver of late, this relative strength chart reflects that Silver is still high on a 30 year basis! ZSL has a chance to do pretty well due to these two silver charts!
