From NFTRH 825:
Speaking of silver, the weekly chart is as it has been. The pattern breakout has loaded a target of 35. First the current corrective move needs to be broken, which did not happen last week. As such, we cannot rule out a return to the 26s for a breakout test. This would probably coincide with gold testing 2440 and GDX testing the 35 to 37 range. Alternatively, if silver takes out last week’s high of 30.55, it would probably break the correction and set about its target of 35. I want to be mentally prepared for potential continued short-term corrective activity.
Silver is definitively losing support this morning and as long as that remains the case, a tap of the up-turned 200 day average (orange) or even the support/neckline below it at 26 (+/-) is viable, if not likely.
The US dollar is still on its bounce, which is normal. Recall that in #825, we noted significantly higher levels it can bounce to while still remaining bearish or bear biased. If this is what I think it is, an oversold USD would reset for more downside in the near future, and the precious metals (and other markets they have been correlated with) would continue to make a healthy clean out of the excesses.
Alternatively, the party is ending now. But given the trends, we will stay with our original views until enough information to the contrary comes in.
