Important chart

I didn't do an end of month TA post, not least because I didn't want to distract our readers globally from the fine discussions going on in the posts below, but there's one monthly chart that stands out ... silver. As badly as the price of silver has looked, it needs only to hit $19.50 this month to clear the long downwards trend line that goes back all the way to the $50 peak three years ago. That line (green, dotted) has since been a rally stopper nine different months.

In fact, the $18.90 level where silver now stands would be enough to break that trend line next month. So, more evidence that a big move is coming in silver (and by extension gold) pretty soon. I'm still guessing that it will be in the downwards direction, based on my target below the fold.

Note silver has had it's lowest weekly close since ... August 2010!