Silver Update

I thought you might be interested in a short-term silver update.

As forecast last week, silver stopped and reversed at 24.98 on the Dec10. Lots and lots of support at 25 so, barring global financial collapse, that should be it. Because price has fallen about 15% in 5 days, we'll most likely get a re-test of the 25 level before further consolidation with an upward bias.

A break of 25.30 means your re-test has begun.
A move up through 25.60 signals 25.85 and, through there 26.40.

As mentioned this morning, the most likely scenario for Wed-Fri is a quick re-test of 25 then the upwardly-biased consolidation leading to a Friday close near unch for the week, around 26 to 26.50.

Some of my favorite silver miners have really been dialed back, too, and look pretty interesting here. SVM @ 10.5 and EXK @ 5.5 both look quite compelling.

Lastly, don't forget your daily Harvey.
http://harveyorgan.blogspot.com/
The open interest in the front-month Dec10 contract is still extraordinarily high. It's quite interesting that with a 15% correction, so little OI has been closed or rolled. Keep a very close eye on this.