- Silver staying within confines of multi-week channel
- Gold could provide guidance upon pattern completion
- Staying with a bullish bias as long as the techs continue to warrant
Not a lot has changed since when we last looked at silver prices on Friday; the upward channel within the rise out of the inverse head-and-shoulders pattern continues to keep prices supported in the near-term. The US dollar has been rallying, but precious metals aren’t paying too much attention at this time. We’ll keep that relationship at arm’s length as per usual unless it begins to truly matter again.
Silver could break down out of the three-week-long channel, but maintaining above 17.75 is key to keeping short-term prospects positive. A break below there would likely bring the trend-line off the December low into play, as well as the neckline of the bottoming H&S we’ve been discussing for the past few weeks. That is our bigger picture line-in-the-sand. On the top-side, stay in the channel and take out the 2/16 high of 18.14, and we should see a move to the next objective around the 18.50 mark. This represents a swing low from back in August as well as key closing prints on several spike highs back in November. As long as there isn’t a key failure the eventual target remains at 19, the November peak and measured move target of the inverse H&S formation.
Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinonFX.