After making its big move, silver has once again digressed back into a sideways trading environment constructed from a few significant technical levels on the chart.
The most relevant of these pivots will likely be the 21.110 level of support. Above here, price will likely move freely up to the 21.278 – 21.335 area before encountering any sort of additional selling pressure. On the flipside of the equation, 20.966 is in initial support in the event of a decline, followed by the more significant 20.760 – 20.805 area on the chart.
Because this market doesn’t have a clear, near-term directional bias (although a slightly positive bias would not be labeled inappropriate) there are valid trading opportunities on either side of the market. Any negative price action should stabilize above the 20.630 low if the market is to avoid the threat of a serious correction.
On the upside, a confirmed trade above 21.335 could rekindle bullish momentum and a sustained breakout above 21.630 certainly has the makings for a bullish breakout from the current range.
September 2014 silver 30-minute bar chart (e-Signal)