Weekly Commodities Review - 20 October
Silver - Weekly
This chart details the sharp push higher during the peak of the pandemic crisis. As is so often the case after a major move like this the price action has since retraced around 50 percent of this major move towards $19.375.
This move lower from the 2021 highs has also set up a broad negative trading range, which rests currently between $18-26.
The 61.8 percent retracement level of this move is down at $16.8. This suggests the outlook remains relatively bright as long as this area holds. Any break under this key support would greatly increase the chances that price action was set for a full retracement back down to the 2020 lows.
So, despite the medium- to long-term trend being negative, there is still room to be relatively optimistic on silver. With investors likely to be interested in building longer-term positions aiming for moves to the 38.2 percent area at least, at $21.96, and even upper end of the current trends at $26, with stops under the 61.8 percent level at $16.8.