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Weekly Commodities Review - 20 October

Silver - Weekly

1W chart for silver (Source: OvalX)
Historical performance does not guarantee future profits.

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.

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Please note that the presented content refers to the Oval group which contains two legal entities: Monecor (London) Limited authorised and regulated by the UK Financial Conduct Authority (FCA) with Financial Services register number 124721. Monecor (Europe) Limited authorised and licensed under the Cyprus Securities and Exchange Commission (‘CySEC’) with license number 096/08.