This is why I'm watching silver closely. The second bounce off of $14 smells like a , but I've seen such configurations be invalidated once prices hit their first resistance. With silver prices currently under a 24-month (around $16.00-16.50), I would like to see a technical break before the end of the month (with more US dollar weakness) to be more convinced of the prospects for this metal. Note that the is also testing a long-term . A break of this resistance would theoretically suggest that momentum is building in the market, thereby supporting a technical break above $16. If this were to happen with a clear breakout above $16.50 (or even better $17), I would expect prices to rise back up to $19 by the end of the year.
The conditions for a technical signal are thus set out, but we should all know that silver may very well start falling again so long as prices are below $16 this week. Nonetheless, there's still a decent support at $14 on which I will continue focusing in the weeks ahead.