Silver Friday Morning Feb 25th Update / JPM bring out your dead

Yesterday's rout in silver is very suspect as it developed in after hours trading where there is low volume and has all the PINNINGS of a bear raid. The shorts are in big trouble and are desperate. Margins have been raised to no avail in the last month -- and coming into Thursday there was still over 30K March Futures contracts that haven't rolled over the May. All indications so far suggest that the sell off was a panic raid by the shorts.
The CHART action is silver is very similar to gold in that all that occured on the chart was a break of the upper dotted trend line and a test of the lower red line mini channel support. The big bounce off of that area does lend to credibility that it was a bear raid as the desperate shorts are trying to get the longs to liquidate the March contract as first notice day is next week. We've discussed that this is showdown time in the silver pits ----and yesterday's action has all the signs. We cannot rule out another attempt today --- but at the moment --- the lower channel red line has provided support to silver and that keeps the uptrend intact. Bulls should watch the support is the 32.20-32.50 area today --- it looks like a strong holding point. The 32.80-32.90 area where the dotted trend line is looks like the pivot point.
In summary --- the SILVER uptrend is still intact as long as price is in the red channel-- and if silver closes back above the dotted trend line and the 33.30 area --- it will favor a test of the 34-35 dollar area next week.

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