The silver prices continue to oscillate between 2 very important levels (26-27.7) that are highlighted in blue on my chart.These levels happen to be the upper range of my bull flag that is currently situated in a rising chanel. A break upwards past the 27.3 level would thrust silver past the 27.7 level into a vacuum towards the upper limits of the upwards channel, which would put silver into the 40s range in short order. If silver manages to hold and consolidate its gains, the all time highs of $50 an ounce would not be out of the question.
The federal government is on the cusp of passing an additional stimulus bill which will continue to put downwards pressure on the dollar and money into the hands of millennials whom have found a knack for the shiny metal.
Backwardation is the positive discrepancy between the physical market and paper market's silver prices. Physical silver is selling at considerable premiums and higher prices, historically this has caused the paper market to close the gap in a matter of months and slingshot silver to considerable heights.
In recent days silver has also presented some relative strength compared to the dollar , S&P , and gold. The following week will be a very interesting and an important one. The dollars direction will most likely be decided and the fate of metals in the short term will be clear.
In the case where the dollar strengthens and silver decides to decisively fall below the $26 level, it can get ugly very quickly for silver, most likely falling to the bottom of the bullflag for some considerable support (roughly $22.5).
The federal government is on the cusp of passing an additional stimulus bill which will continue to put downwards pressure on the dollar and money into the hands of millennials whom have found a knack for the shiny metal.
Backwardation is the positive discrepancy between the physical market and paper market's silver prices. Physical silver is selling at considerable premiums and higher prices, historically this has caused the paper market to close the gap in a matter of months and slingshot silver to considerable heights.
In recent days silver has also presented some relative strength compared to the dollar , S&P , and gold. The following week will be a very interesting and an important one. The dollars direction will most likely be decided and the fate of metals in the short term will be clear.
In the case where the dollar strengthens and silver decides to decisively fall below the $26 level, it can get ugly very quickly for silver, most likely falling to the bottom of the bullflag for some considerable support (roughly $22.5).
Note
Silver is still consolidating between support and resistance butnits approaching a very interesting area soon. I expect a reaction in the coming weeks. Recent price action suggests strength and dip buying.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.