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.