Silver is in position to rally sharply from here, and will do so if the dollar does what’s expected of it, and goes into retreat from here. The reasons for renewed dollar decline are set out in the Gold Market update.
Looking at the 6-month silver chart we see that the price has stabilized in the vicinity of its bullishly aligned moving averages over the past two to three weeks, and above the support of its 200-day moving average. The RSI and MACD indicators are now picking up, with the latter about to rise through its moving average. Any dollar weakness now is expected to trigger an upside breakout, which is considered probable within the next few days.
