Who knows how far silver can correct before resuming its run. I'll be sure to have dry powder to scale into new positions. The first stop in silver appears to be around 44.30ish on /SI which is the 10-SMA (pink line). This area has been formidable support since January. Next stop is the 20-SMA, which is much lower, currently at 41.713. This is truly a worrisome area for silver bulls. These types of corrections can be violent, but very profitable if played correctly. At current levels, silver has already corrected 10% from its highs.
First the Dollar Chart, then Silver. On the Silver chart, notice the high volume pattern and the price exhaustion on the last push-up. Also, the highlighted ovals show past occasions in which the prices pinned above the bollinger bands, each time the price has pulled back by approximately 10%.
This correction should be viewed as, healthy.