There isn’t much for me to add regarding analysis from last week. But I will reiterate my analysis to explain the patterns I am looking for. To that end, I have attached a chart below to make it easier:
My expectation last week was that silver could see another rally up towards the $18.50-$18.60 region. From that point, it could come back to rest the $18 region. As you can see, silver is now testing support noted last week, as expected.
If the $17.70 – $17.80 region [on the chart, this is where the 55 SMA – pink line is found] is successfully held as support, then it can develop into a rally to complete a higher high with a target on $19 per ounce.
On the other hand, any break below the $17.70 – $17.80 region before a higher high is seen, opens the door to retest the $17 – $17.20 region [on the chart, this is where the 100 SMA – blue line is found] where the 2017 upward trendline is located. But, I view that drop as the set up for a powerful rally I expect to take us into the summer.
So, as you can see, we are at another inflection point in silver, and need to keep an eye on supports this week to judge the best entry points into the market. If the market is immediately bullish, you don’t want to miss out for being too cautious.