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Contributed Commentaries

Still surfing the silver wave

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Last week with silver @ $22.35 spot I suggested the metal was getting ready for a pop. We got the initial move back into the yellow box but price got stuck at $23.50; but I still think silver will make it to the top of the box as then suggested. The 4 hour chart below is an update, with the addition of yet another box in grey to depict a further area of congestion bulls are currently fighting through.

Notice bulls are holding support in the $22.90 area, at the bottom of the box.

Now that the minutiae of support and resistance is expressed – A zoomed out, less cluttered view of the weekly intervals should further illustrate why I think silver will get to the top of the box, and why I think the metal can move much higher if breaks out.

In my opinion the probability remains that stochastic RSI will cycle to overbought levels (and possibly stay there) as price tests the top Bollinger band, which corresponds to an initial move (often back tested) above the descending trendline.

By

Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.