Silver faces a wall of resistance at the $35.50, a confluence of key levels:
- Daily Downward trend-line resistance at the $35.60 level (see above video)
- Daily 200 Moving average
- Weekly 50 Moving Average
- Symmetrical projection of the September-October swing
The only thing helping Silver is the daily squeeze that is preparing to fire (see video) which could push silver past these key levels. However, if this fails, we could see a pullback to the mean averages.
Also noteworthy is the action of Dollar Index. The Dollar Index traditionally has moved in opposite direction to the precious metals, although not always.
A look at the Dollar Index shows that there may be some volatile moves ahead. If the dollar declines (and heads towards its supporting trendline) then we could see some upward pressure on both Silver and Gold.
As a buyer of silver I would be cautious right now until the wall of resistance is breached.