September 30, 2021 - (Gold Market Wire) - Trading is about creating and maintaining perspective, no matter the environment. In that regard, we find it interesting that the big sell-off in Silver has aligned with the end of the quarter. The sound of trading managers twisting traders' arms and telling them to close their losing positions in Silver is bouncing across the world's trading desks - yet again. "Get that thing off your books," says the Manager/BOT/Algo, in charge of the show. Technically that produces interesting results, as the chart shows:

The channel is defined clearly. Of that there is little doubt. Downtrending and with a move to the lower bound right through the month of September, to end the quarter at the lower bound. (Just to note: we did the same at the end of Q1 with our late March sell-off.) Some would say a contra-rally is in order, and we can see why. But if we zoom in a bit closer, we can notice something else:

When we add this new perspective to today's 'dead cat bounce' out of the East, we start to get the feeling that any contra-rally may not get off the ground at all. The smell of roasted Silver Bull is wafting through the market air. Today's action out of the East tells us we better reclaim the channel fast - or we could get another merciless lurch lower. As we noted yesterday, there is not a lot of technical support under the $22 level. We saw it as kind of a last line of defense before a significant re-adjustment lower. As of now, we're not ready to discard that assessment.