Silver Update

Here is a line chart of the hourly closes during pit trading in May silver futures.

I had thought that the 1006 top of February 12 would start a drop to 800 but today the market took out that high decisvely on high volume.

I have to conclude that May silver is headed for the next strong resistance level at 1096, the 3 1/8 multiple of the 1991 low of 351.

The swings back up toward the 1006 level had grown progressively shorter. This is normally a bearish indication. But now the last swing from point e has become the longest of the three upswings so far so the market not only has taken the bearish implications of a swing analysis of the move up from 915.

I would expect the 1000 level now to function as support for any reaction back toward the breakout level.