Silver bounces from support trend line

Trend lines are a powerful tool that represent areas where buyers and sellers tend to change their behaviors.

On Silver, we can draw a support trend line that is upward-sloping and has held up prices for several months.

Silver has reached this support level and is bouncing accordingly. Any traders positioning long will want to place a stop loss below the support trend line.

If Silver does fall below the blue trend line, it is a big clue that the mood of the market is changing and that much lower pricing is on the way.

Picking up a clue from Gold, a temporary bounce is normal, but the Elliott Wave count still suggests lower pricing is in the future for Gold.

Based on Gold's pattern, this suggests Silver may find a temporary bounce then break down below the support trend line.