Our last post on the blog yesterday suggested that 35.50-36.50 would be a key going into Wednesday. As you can see by the chart --- that is the range so far today.
Silver has been trying to move above the 36.50 area ever since the Monday highs. We have now had three attempts at this area ----- and a showdown is due on the very short term. Each price print in that area has been met with selling -----and the volume (not shown but reported by trader Dan) has been lower on the climb. We can see where the Monday GAP up occured in spot ----and how the market has come back to this area. Thus the short term battle is in this one dollar price range. Support is 35.20-35.50 ------------any break of 35.20 would begin to favor that the pullback is not complete and breaks below 34.75 would add to that scenario.
Price is arriving at the apex of the triangle --- and a break one way or another is approaching. Until price breaks above the highs of Monday --- its best to be a bit cautious. The trend has not been broken yet on the short term --- but this area needs to be watched carefully.