Silver has had two false breakouts of the ascending channel which it has recently entered again. The correction to the down and out side of the channel after the exuberant explosion to the upside of the channel lasted longer than the upside rally did, but because we have reentered the channel this is a sign that we may be resuming the upward climb as long as we can make it above the resistance at 18.7. Once the silver price gets above that, it's clear to initiate another rally against the psychologically significant 20 dollar level.
This is not trading advice
This is not trading advice
Comment:
It looks like the price is climbing along the bottom channel line, but if it doesn't make it above the resistance by the 27th or 28th, it will probably breakout of the channel and fall to the support at 17.5 once again. Even so, I would be wary of shorting the metal as risk off mindset and a search for safe havens is beginning with global oil prices increasing, and the fed deepening its dovish stance. Buying the dip would be a wise move if it did breakout to the downside. Otherwise, I think it will make it at least to 20 dollars if not above in the near future.