Maybe someone remembers my fundamental analysis on silver here. The fundament stays strong and seems bullish from long-term. Long-term means months maybe years. Soon there will be available new info about production and demand in 2018 (and it will be very important for further development and crucial for view of this analysis).
That is not just question about demand and production. Commodities like gold and silver are considered as “safe heaven” for investors in the economic slowdown or recession, so money from stocks move to commodities and bonds.
Let’s look right now to mid-term technical analysis.
We can see how market during the moths formed DOUBLE BOTTOM pattern. It is a reversal pattern, which can turn the market. Almost, we can see that in big strong downtrend and this formation is known as reversal. It means that can end-up the downtrend. The neckline was set on 14.9 USD per ounce. When market broke it, we got strong confirmation, that this pattern is being valid.
It doesn’t mean that market will go only up. The silver has strong resistances in front of it. We can see market without a short-term correction. Strong resistance area is green and red resistance is very strong, so there is a big probability that the market will bounce from this level. But there are several strong resistances also. One of them is blue bullish trendline (long-term) and there is a chance that market could test it. Firstly, it must be broken red resistance.
When we look at the RSI, we can see market overbought. This is not so much bullish. There should be a little correction before the next grow. Where is this point? Exactly in neckline (yellow).
For next healthy grow, there should be a correction. On the other hand, we don’t know what market will do and could grow more and more. That’s the reason to watch daily candle (f.e. bearish pin-bar could cause short term correction).
This analysis serves only for educational purpose and can NOT be considered as investing advice. While trading, we recommend you to keep your money and risk management tight.