The silver price fluctuated in the trading channel within a week, as if the $ 28 mark attracts the precious metal like a magnet. It looks like the $ 29 area is putting up huge resistance that extends all the way to the $ 30 line. If silver breaks above the $ 30 price level, it is likely to head towards $ 50, as it has done on numerous occasions in the past. However, it will take a long time to get past the $ 30 value. In the short term, volatility will be heightened as many players wonder if silver can break out.
From a short-term point of view, the zone near the $ 26 mark will provide strong support. In addition, the uptrend line will play a special role. It should be noted that the silver rate is now forming a large ascending triangle.
According to Christopher Lewis s forecast, activity will depend on many factors, but if you look at the technical analysis, there is not much negative in this pair, however, a rollback is quite possible, given the prevailing market sentiment.
Remember that silver is usually very volatile, so you shouldn t mindlessly invest huge amounts of money in it. In fact, it is possible to advance in small steps in order to create a larger position for a possible breakout in the future.
As technical analyst Inna Rosputnya notes, the “flag” pattern on the monthly chart of the silver rate was broken. In fact, in 2012 there was a clear decline in this market – the “flag” was broken down, followed by consolidation and another fall. However, if the precious metal breaks higher, the bulls will target the $ 38- $ 40 range.
In general, a lot depends on the dynamics of the main economic indicators. It is worth noting that inflation in China s manufacturing sector is growing quite rapidly, and this, as many economists warn, could lead to increased costs for a wide range of goods around the world. If inflation concerns spread to mainstream markets, the precious metals sector will shine and bring good profits to qualified traders.