Seeking Silver -- What Happens Next

I have to say that today's chart of silver isn't the most bullish I've ever seen...

It looks like silver is finding support on the 20-day moving average (the reddish line). But the body of today's bullish candlestick is contained entirely within the body of yesterday's bearish candlestick. This augers more weakness ahead, perhaps with a trip to the bottom Bollinger Band at 10.60 (which, as you'll remember from a previous post, is right where Fibonacci retracement lines up).

Silver is already volatile. Now, to add some nitroglycerine to the chili sauce, we have this from one Reuters...

NEW YORK, April 25 (Reuters) - The first ever investment fund backed by silver to be traded on a major stock exchange may obtain U.S. regulatory approval within days, a source close to the matter said on Tuesday.

When the silver ETF debuts, what happens then? I'd expect a bunch of people will buy it. But I'd also expect a bunch of people would sell silver, because they bought it in anticipation of the silver ETF making its debut. So, after a quick bounce, silver prices could go down.

Perhaps that's what the market is waiting for to drive silver to the bottom of its Bollinger Band. Perhaps it will go lower. Fine with me -- I consider a good pullback a buying opportunity, and if silver gets back to $10 an ounce, I'll probably buy with both hands.

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