Silver's Key Resistance

Silver's Key Resistance

Written by Craig Hemke, Sprott Money News & TF Metals Report

 

With the recognized top in the US dollar, it appears clear that renewed bull markets have begun across the commodity sector. Copper, crude oil and even gold are showing rallies and breakouts that promise much higher prices in the months ahead. But what's the matter with silver?

 

First of all, you need to realize that the digital silver "market" is easily the most manipulated in the world. This is no longer some sort of "conspiracy theory." It is, instead, admitted and proven fact:

 

 

And by what means do The Banks manipulate price? They use their position as "market makers" to utterly dominate the digital derivative price. The relative concentration of this manipulative power in COMEX silver is displayed in the chart below from GoldChartsRUs:

 

 

But overt price manipulation cannot last forever. Simple laws of economics dictate this. And with prices of all commodities rising as the US dollar falls, pressure is building for a breakout in silver that will force the price manipulators to fall back to higher ground.

 

How will you know that this breakout has begun? The chart below lays it out quite clearly.

 

 

Since the bear markets ended in December of 2015, the dollar price of COMEX silver has—ON THIRTEEN SEPARATE OCCASIONS—closed above its 200-week moving average. Note that after each of these THIRTEEN events, the price was immediately set upon the following week and pushed back below this important, long-term trend indicator.

 

This is clear, deliberate and obvious price suppression designed to keep price contained. Could it continue for a while longer? Of course. Will it continue forever? No. Especially not with the falling dollar and rising commodities ratcheting up the pressure on The Banks to an intolerable level.

 

How will we know that The Banks are being forced to retreat? A simple higher high versus the $17.70 level of late January would be your first signal. After that, any weekly close above $18.50 will be a clear indicator that this latest price control effort—that has now extended for over 19 months—has failed.

 

 

Finally, where would one look to trade this latest dip in the hope of profiting from the next rally and possible breakout? Well, with the Commitment of Traders Report already showing The Specs to be "washed out," and with Commercial gross long positions now at an ALLTIME high, any further price decline from here should be limited. The chart below shows that any decline to near or below $16 should present a compelling opportunity for traders and stackers.

 

In summary, the US fiscal situation is dramatically worsening, and this is leading to a sharply falling dollar and failing confidence in the currency. These factors will eventually serve to spike interest in the commodity sector in a manner similar to 2010-2011. An eventual breakout for COMEX silver, through and above its 200-week moving average, will be your first signal that things are about to get interesting.

 

Silver's Key Resistance

Written by Craig Hemke, Sprott Money News & TF Metals Report

 

Check out these other articles by our contributors:

The Fed’s “Catch 22” - Dave Kranzler (20/02/2018)

Irredeemable Currency De-tooths Savers - Keith Weiner (20/02/2018)

Is The Fed Back To “Quantitative Easing?” - Dave Kranzler (16/02/2018)

“Lots of legs of the economic stool are starting to wobble” — Eric Sprott on the debt cliff, a weak economy, and why gold looks bullish (Weekly Wrap-up, February 16, 2018)

 

 

Comments

meterman Silver Savior Wed, 02/21/2018 - 12:12 Permalink

KINGS? You mean IDIOTS, don't you.

I sold all my silver (3000 coins) last year

AND - ALL my Gold (300 Buffalos) yesterday.

That's YESTERDAY as February 20, 2018.

What a great day it is today. No more of that worthless trash in my life. Only LOST 43% on the SILVER and 25% on the GOLD. That, of course does not count the interest I could have made on the value over the last SIX years.

Silver SUCKS - Gold SUCKS

Death to the PM HUCKSTERS

 

In reply to by Silver Savior

ReturnOfDaMac KnightTakesKing Wed, 02/21/2018 - 14:11 Permalink

Ha, ha, ha!!!   Been hearing that all century long.  And the century before that.  The farce runs deep with you my friend, you been rooked and hate to admit when you are wrong. This is THE single most costly mistake investors can make.  When stuff doesn't work,  stop doing it.  Praying for destruction, rooting for collapse, and hoping for a crash will not make it happen, and sorry bud, but it wont.  Too many really fat-cats all over the planet have a vested interest in keeping the gravy train rolling. So guess what's going to happen?  The gravy train will keep rolling.  Smart move is to hitch a car to that engine and ride it to the land of profit$.  Or buy and bury rocks, the choice of course is yours.

In reply to by KnightTakesKing

fbazzrea ReturnOfDaMac Wed, 02/21/2018 - 16:36 Permalink

trolls are out in numbers today

so are the normalcy-bias sycophants

possibly Soros, et al, shills

who knows? but one thing sure, with so much emotional investment, something abnormal.

one might recognize JP Morgan's 120 million ozs Ag stored in their vault a clue as to its value. unless of course, JPM needs to take a few investment cues from anonymous bloggers on ZH. 

i doubt some Ag carpers have ever owned an ounce

In reply to by ReturnOfDaMac

ReturnOfDaMac meterman Wed, 02/21/2018 - 13:56 Permalink

Yea, welcome to the moneymakers club Meterman.  Don't feel too bad, its the cost of education my man.  Silver has broken more hearts than cupid's arrow, you have figured out that the metal racket is a hucksters trap, now you can move on and make $Money!

Increase that so-called "worthless" fiat the bugs keep dumping on.  I want keep increasing the amount of "wortless" fiat in my account as high as I can get it.  I have been investing and backing up my truck on war (defense stocks RTN and LMT), rape and racketeering (GS, JPM), and a little safety (S&P 500 ETF).  This has been ok for me since 2008, almost a decade.  Hell, these days I'm getting brave and even thinking of investing in 'Murican Spytech (AMZN and GOOG).  Many many profitable choices out.  Good luck brother!

Best Returns,

Mac

In reply to by meterman

knotjammin2 meterman Thu, 02/22/2018 - 06:15 Permalink

You are so full of it. I'm not saying PM's are the answer for everybody but they are far better than the toilet paper you will be holding when SHTF.  I'm buying all the physical I can. Even if gold goes back to $35oz it will still be worth more than paper money.  I'm also long on lead and brass. They will be the more valuable than gold in the near future.

In reply to by meterman

numapepi Wed, 02/21/2018 - 09:20 Permalink

The silver price is manipulated, everyone knows it, even the SEC... yet no one goes to jail. Oh yes the shareholders are fleeced, again and again, but the criminals continue, with large bonus checks to spur them on.

Some people are above the law... which means we live under arbitrary rule.

sleigher numapepi Wed, 02/21/2018 - 14:22 Permalink

Silver is manipulated to keep the price down.  So that is the perfect time to buy.  They can't keep it down forever.  I have used that last few years to stack a large amount of silver.  I intend to keep stacking.  If they do manage to keep it down for my lifetime then my kids will speak highly of me while enjoying the fruits of my labor.  I am ok with that.

In reply to by numapepi

Dumpster Elite Two Theives an… Wed, 02/21/2018 - 10:27 Permalink

I was doing it for years, but I finally gave up last year. It's just so manipulated, and until someone does something about that manipulation, I'm done. You can't win when the House sets the rules, and then doesn't play by them. It's almost like a) They're ALL in on the manipulation, or b) They don't give a fuck. It doesn't even follow Gold anymore. 

In reply to by Two Theives an…

Dumpster Elite gaoptimize Wed, 02/21/2018 - 10:47 Permalink

Well, I've been hoping for that for years now. If it ever does occur, I'll be a happy guy, but I'm done buying for now. I said that when I filled this last safe, I was done buying. Hey, I'd be amazed if Silver got above $20/oz. At least then it might be doing something. Been reading these articles from the folks that want you to buy their Silver for years on here, always saying that the big price spike is "right around the corner."

In reply to by gaoptimize

. . . _ _ _ . . . Dumpster Elite Wed, 02/21/2018 - 11:33 Permalink

Coin traders have been gobbling up silver coins for years now.
Nobody wants the commemoratives anymore, unless they are silver proofs.
Shitty coins from Nauru etc. are going for double spot, at least.
eBay bullion is going for up to 50% over spot... plus shipping!

One of these days, when Douchebank fails, when vol. erupts, if oil spikes, or when the petro-dollar collapses, the banks will want to cash in on their phys.
The downward pressure will come off like a cork.
shouldn't be long now.

In reply to by Dumpster Elite

silverserfer Dumpster Elite Wed, 02/21/2018 - 17:44 Permalink

Since silver supply comes mostly from lead/zinc mines as a cherry on top type of income, those mines don't care what the price does. When these mines dry up is when the primary silver miners can play to win and defend their prices in futures and supply will become tighter. Right now mine supply is meeting industry demand. Investment speculation is not the driver of price like many want to believe. Remember industry needs silver but wants it cheap so they contribute to price suppression(massive shorting) in order to keep the status quo.

 

But a prolonged subsidy in silver prices is a gift for savers and will not last. 

 

There is a reason that there is a US mint at West Point.

In reply to by Dumpster Elite