We have stated that the cartel would be most unhappy with silver's rebound to the $40 level and would vigorously defend this level, as a convincing break back above $40 would set silver back on pace for a quick return to the the highs near $50, negating all the "bubble" propaganda.
Blythe reappeared back at work today, right on schedule. As silver neared $40 overnight, a new take-down commenced, and silver has been driven $4 lower to under $36.
For now, silver has found support near last Friday's close around $35.43. It appears the cartel will push silver down to retest Friday morning's lows near $33. Should $33 fail, silver will likely test the $28-$30 range, where SIGNIFICANT support should be found. We recommend substantial physical purchases should we see the $28-$30 support come into play.
We'll provide greater analysis later. For now, BTFD!
