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What next for silver?

Kitco News

As reported earlier this week silver broke a very important level on the weekly chart (click here). Now looking to the left on the higher timeframes could be an important exercise. There is a key feature on the monthly chart below. The March 2008 high at $21.31/oz is about to be tested and it was also important in July 2016. Now, it seems like these levels are from a long time ago but they were used to good effect.

In addition to this, the 23.6% Fibonacci retracement level is also very close by. This Fib originates from the high of $49.83/oz down to the low of $11.63/oz from April 2020. The silver market is notorious for respecting Fibonacci levels and on this chart along the 50% area played a key role in the move back down.

Zooming in slightly closer to the weekly chart you can also see that the orange shaded area is also a previous consolidation high. If it does happen to be broken then the green zone closer to $18.50/oz could be next. Lastly remember to watch the psychological round numbers, most notably $20/oz there could be some support there too.

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.