Silver: How high can it go?

Following Silver's aggressive rise in recent weeks, it is useful to examine how far this rise can extend to. From a technical perspective, Silver has been trading within a descending parabolic channel after its 2011 All Time Highs. In recent years, the channel is following a more distinct Lower High pattern, which as seen on the chart produces 1M Falling Wedges within the parabola (MACD = -0.432) that eventually break the pattern to the upside in order to reach the third in succession Lower High, only to be rejected and form the next Falling Wedge.

We believe a similar candle sequence can be followed (if the Falling Wedge breaks (the dashed line) upwards), which may take the price close to 17.900. The 18.550 - 19.100 zone is the maximum extension within the channel.







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