Still surfing the silver wave
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.