Silver: getting some of its shine back?

I haven’t been charting Silver in my recent updates but the metal has been making some recovery style movement on increased trading volume which has piqued my interest once again. In this article I have posted a few charts and discussed the levels I’m keenly watching.

Silver

Silver monthly (condensed): my data only goes back to 1967 but this gives a fair idea of how the metal has progressed of late. There was a peak in 1979 followed by a pullback and then another, even higher, peak in 2011. Price has been on the decline for much of the time since 2011 but has recently started to carve out a pullback on increasing volume. Price action closed the week back above the $20 S/R level and printed the first bullish candle close above this threshold since July 2014. However, the $21.50 and $25 levels look to be resistance zones to contend with as well.

SilverMonthly

Silver monthly expanded: this chart view shows how buying momentum is increasing and that any 61.8% fib pullback would take price up to near the $35 S/R region:

SilverMonthly

Silver monthly Cloud: price action could get choppy now given it is breaking back into the monthly Cloud. Note the increased trading volume underpinning this move:

SilverMonthlyCloud

Silver weekly: the whole and half number levels look important on this upwards journey but a close and hold above the $21.50 / $22 would be a bullish signal:

SilverWeekly

Silver weekly Cloud: price action has closed and held above the weekly Cloud for the first time since September 2011. Note how there was a recent bullish Cloud breakout followed by a pullback and, the question now is, will there be any bullish continuation? Note also how Volume has been increasing and this is a bullish signal as well.

SilverWeeklyCloud

Silver daily: whilst the overall picture is encouraging on Silver, trends don’t travel in straight lines. Thus, any pullback down to the daily chart’s 61.8% fib, near $16.50, could be expected even if there is to be eventual bullish continuation.

SilverDaily

Silver daily Cloud: Volume is visibly on the increase on this time frame as well:

SilverDailyCloud

Summary: the daily, weekly and monthly charts of Silver show bullish momentum increasing and trading volume is increasing. 

  • Any hold above the $20 level would have me looking for tests of the $21.50, $22 and then $35 levels.
  • Any pullback though would have me looking for a test and possible bounce up from the $16.650 region.

 

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