With the silver price closing at the high of the day, with an extremely bullish technical indicator, it now has the Green Light to move higher. Of course, nothing goes up in a straight line, so we shouldn’t be surprised if silver experiences a correction or consolidation along the way.
As I stated in my article earlier this morning, for silver to continue its trend higher, it would need to close near the highs of the day. At the time I published the post, silver’s daily candlestick showed no real decisive trend. The trading body of the candlestick was right in the middle of the day’s trading range, shown by the wicks at the bottom and top.
For silver to remain in an upward trend, its candlestick would have to look more like the GREEN one shown in the chart than the RED one. If the silver candlestick resembled more of the RED one, then it would have signaled a topping pattern. However, the market gave a GREEN LIGHT at the close of trading.
By silver closing near the highs of the day, the Bulls won the trading war provide a beautiful GREEN BULLISH daily candlestick:
Again, these technical indicators give traders an idea of where silver may be heading. While there are no guarantees, a GREEN bullish candlestick provides a much better chance for a move higher than the RED one, which is called a “Shooting Star.”
What I have noticed watching silver these past few days is that the movement is extremely volatile with wide swings. So, we may see the same thing in Asian trading and tomorrow during U.S. market hours.
Regardless, here are some longer-term silver charts showing the next important TARGET LEVEL.
Back on July 15th, when I published my article, IMPORTANT KEY LEVEL: Silver Needs To Break Above This Price, I stated that silver needs to break above the $19.75 level before moving up higher. And, in typical BREAKOUT Fashion, that is exactly what occurred over the following trading days.
Once silver firmly closed about the $19.75 level, traders came in a big way pushing the price up $3.40, or 17% in just three days. This was a textbook BREAKOUT. Now that silver has also broken through $21, what is the next target level?
If we look at Silver’s Weekly Chart, the next resistance level is at $26-$26.50. However, the silver price may not get there this week. It’s highly unlikely. It will probably take several weeks or a month plus to reach that level. But, for silver to finally break above the $21 level set back in 2016, was extremely important.
I also stated that once silver closed above $21 on a monthly basis, it would be in a NEW BULL MARKET. I will be posting a new update toward the end of the week showing the longer-term monthly silver charts.
Lastly, I checked one of the largest Online Precious Metals Dealers, and they are now charging $35 for a 2020 Silver Eagle (when buying 1-19 coins). That is nearly a $12 premium… WOW!
I am glad that many of you already have a good stash of physical gold and silver.
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