Two weeks ago we focused on Silver, where we were bullish. Last week we also wrote about Gold, where our sentiment was also positive. Both instruments are now trading higher and we obviously keep our bullish approach alive. Let us analyse the silver again and see in detail how the situation changed over the last two weeks and what are the current perspectives here.
First of all, price made a significant step towards the up trend as it broke the upper line of the channel down formation (green). In the same time, this movement confirmed the inverse head and shoulder formation that was formed in the last few months.The H&S and a denied channel down formation coming together gave strong buy signal here. Traders read that correctly and almost all days in the last two weeks were bullish and finished with higher highs and higher lows. So far, the party goes on and we do not have any signs of a possible reversal (stronger than the usual correction).
The closest resistance is 18,7 USD/oz (orange) and we can assume that the price will get there in the next few weeks. The closest support is the blue line connecting recent higher lows present on the chart since the beginning of the year. As long, as we stay above this line, demand on silver can be calm and sure that everything is going according to their plan. 