Very simply, silver is actually doing the right thing if we are looking for sustainability of the bullish move. It is pulling back to test the break above key long-term resistance in the 26 to 27.50 zone and also making a test of a (black dotted) trend line. This is within a technically bullish situation with moving average trends up, the break coming on volume and RSI and MACD positive.
The main caveats? The #silversqueeze hype. Also, the US dollar has remained firm in its little bounce pattern.
The longer-term chart shows the situation. If this test is successful, we’re looking for 34.70 and possibly 50, potentially within weeks or few months, depending on how hysterical things get. If the test is not successful well, it would be back to the grind of the precious metals sector correction.