The chart for silver shares many characteristics with that of gold, as you might expect, but for the industrial metal, the picture is perhaps less clear.
The price action of last week is much the same with the dramatic rise and fall coupled with high volume and repeated the price action of September last year. Therefore it is no surprise to see silver trading lower this week. However, the VPOC here is some distance away at $15.40 per ounce, and I do not expect such a deep reversal to develop.
So what are the key levels here? First, we have one level of potential support now coming into play at $17.65 per ounce with the red dashed line, and whilst not extremely strong, may well provide the requisite platform, but if not, we can expect to see silver return to the $17 per ounce where further support awaits. I remain bullish on silver longer term, and the key level here is at $18.40 per ounce with a clear break and hold above this then opening the way to a rally to the $20 per ounce I outlined in my last post on silver.