Silver is being pummelled today, along with just about every other single commodity on the planet, as the combination of the Socialist win in France along with the results of the Greek elections, has traders running away from growth assets and into the "safety" of US Treasuries ( I still have trouble saying those words in the same sentence).
Many are fearing that Greece will not be able to hobble together a governing coaltion in time ot meet the detail for their loan bailout package.
Either way, the usual "sell everything in sight" mentality has taken over the markets with the result that it has taken silver down below important chart support at the $30 level. As you can see on the following chart, it is trading below horizontal support as well as Fibonacci retracement support at the 61.8% retracement level.
The price remains mired in the downtrending channel shown and if recent history is any guide, it should stabilize either today or tomorrow before grinding sideways once again and deciding whether or not it wants to embark on another leg down (there is not much support on the chart now until it gets to near $28.50 - $28.25 or so. If it falls below the downsloping red line at the bottom of the channel, it will get there. If not, perhaps the bulls can take it back towards $30.50 which is the next upside resistance level that is going to have to be cleared to rattle the bears who remain in control of this market.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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