Chart of the Day – Silver Spasms on Fed Day

by Enis June 20, 2012 3:29 pm • Commentary

Price action in both gold and silver today have been spastic.   Since silver is on track to record its highest volume day since March, and we’re so close to the multiyear breakdown that I mentioned in my post a couple weeks ago, I wanted to highlight the intraday chart so far today:

There is a serious battle being waged between bulls and bears as the $27 level attempts to hold as support.  This chart is a pretty good example of emotions running high amid a headline filled day.

I viewed the Twist today as a bearish development for risk assets and a bullish development for the dollar, so I’m anticipating a break of $27 in SLV in short order, but just sitting on my Jul 27 puts for now.  I’m more curious how it behaves if and when it breaks.